4 Pa.C.S. Ch. 13

in effect

4 Pa.C.S. § 13A02 Regulatory authority.

The board shall promulgate regulations: (1) Establishing standards and procedures for table games and table game devices or associated equipment, including standards distinguishing electronic gaming tables, fully automated electronic gaming tables and traditional gaming tables. The standards and procedures shall provide for any new table games or gaming tables and variations or composites of approved table games or gaming tables, provided the board determines that the new table game, gaming table or any variations or composites or other approved table games or gaming tables are suitable for use after a test or experimental period under the terms and conditions as the board may deem appropriate. (2) Establishing standards and rules to govern the conduct of table games and the system of wagering associated with table games, including the conduct of table games and the system of wagering on electronic gaming tables and fully automated electronic gaming tables. (2.1) Establishing the method for calculating gross table game revenue and standards for the daily counting and recording of cash and cash equivalents received in the conduct of table games, including the conduct of table games on electronic gaming tables and fully automated electronic gaming tables, and ensuring that internal controls are followed, including observation by employees of the board of that process, the maintenance of financial books and records and the conduct of audits. The board shall consult with the department in establishing these regulations. (3) Establishing notice requirements pertaining to minimum and maximum wagers on table games. Minimum and maximum wagers may be adjusted by the certificate holder in the normal course of conducting table games, except that changes in minimum wagers at any given gaming table shall not apply to players already engaged in wagering at that gaming table when the minimum wager is changed, unless 30 minutes' notice is provided at that gaming table. (4) Requiring each certificate holder to: (i) Provide written information at each operational gaming table about table game rules, payoffs or winning wagers and other information as the board may require. (ii) Provide specifications approved by the board under section 1207(11) (relating to regulatory authority of board) to integrate and update the licensed facility's surveillance system to cover all areas where table games are conducted. The specifications shall include provisions providing the board and other persons authorized by the board with onsite access to the system or its signal. (iii) Designate one or more locations within the licensed facility to conduct table games. (iv) Ensure that visibility in a licensed facility is not obstructed in any way that could interfere with the ability of the certificate holder, the board and other persons authorized under this part or by the board to oversee the surveillance of the conduct of table games. (v) Integrate the licensed facility's count room for slot machine and table game operations to ensure maximum security of the counting and storage of cash and cash equivalents. (vi) Equip each operational gaming table with a sign indicating the permissible minimum and maximum wagers at the gaming table. (vii) Adopt policies or procedures to prohibit any table game device or associated equipment from being possessed, maintained or exhibited by any person on the premises of a licensed facility except in the areas of a licensed facility where the conduct of table games is authorized or in a restricted area designated to be used for the inspection, service, repair or storage of table game devices or associated equipment by the certificate holder or in an area used for employee training and instruction by the certificate holder. (viii) Equip all drop boxes in which cash, cash equivalents, fill slips, credit slips or inventory slips are deposited at the gaming tables, and all areas where drop boxes are kept while in use, with two locking devices or keys, of which one locking device or key shall be under the exclusive control of the board, and the second locking device or key shall be under the exclusive control of the certificate holder's designated employees. The drop boxes shall be brought into or removed from an area where table games are conducted or locked or unlocked in accordance with procedures established by the board. (ix) Designate secure locations for the inspection and storage of table game devices and associated equipment as may be approved by the board. (5) Establishing the size and uniform color by denomination of all chips used in the conduct of table games, including tournaments, and a policy for the use of promotional or commemorative chips used in the conduct of table games. All types of chips shall be approved by the board prior to being used for play at a table game at a licensed facility. (5.1) Establishing the procedure to be used by a certificate holder to determine and extract a rake for the purposes of generating gross table game revenue from nonbanking games. The rake may be calculated using a percentage or a flat fee methodology. (6) Establishing minimum standards relating to the acceptance of tips or gratuities by dealers and croupiers at a table game, which shall include: (i) The requirement that tips or gratuities accepted by dealers and croupiers at banking games be placed in a common pool for complete distribution pro rata among all dealers and croupiers. (ii) The right of the certificate holder to establish policies under which tips or gratuities accepted by dealers and croupiers at nonbanking games are not required to be pooled and may be retained by the dealers and croupiers. Nothing in this paragraph shall prohibit a certificate holder from adopting a formal policy relating to acceptance of tips and gratuities, provided that the policy meets the minimum standards established by the board under this paragraph. (7) Establishing the minimal proficiency requirements for individuals to successfully complete a course of training at a gaming school. The regulations shall not prohibit a slot machine licensee from establishing a course of training for its employees or potential employees or prohibit a certificate holder from offering employment to an individual who has not attended or completed a course of instruction at a gaming school and shall require a slot machine licensee that elects to train its gaming employees or potential table game employees to submit a detailed summary of the training program to the board and to demonstrate the adequacy of the training. The regulations shall prohibit a slot machine licensee from charging its employees or potential employees a fee to complete a course of training. (8) Establishing the practices and procedures governing the conduct of tournaments under this chapter. (9) Establishing minimum standards relating to the extension of credit to a player by a certificate holder. Prior to extending credit, the certificate holder shall consider an individual's financial fitness, including annual income, debt-to-income ratio, prior credit history, average monthly bank balance or level of play.

4 Pa.C.S. § 13A03 Temporary table game regulations.

(a) Promulgation.--In order to facilitate the prompt implementation of this chapter, regulations promulgated by the board shall be deemed temporary regulations which shall expire not later than two years following the publication of the temporary regulation. The board may promulgate temporary regulations not subject to: (1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (2) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (3) Sections 204(b) and 301(10) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (b) Expiration.--Except for temporary regulations governing the rules of new table games approved by the board, the board's authority to adopt temporary regulations under subsection (a) shall expire two years after the effective date of this section. Regulations adopted after this period shall be promulgated as provided by law. (c) Temporary regulations.--The board shall begin publishing temporary regulations governing table game rules, licensing of manufacturers and suppliers and surveillance standards in the Pennsylvania Bulletin no later than February 1, 2010. 2020 Partial Repeal. Section 18 of Act 114 provided that the provisions of section 13A03 are repealed insofar as they are inconsistent with the addition of section 1724.1-E(f) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code. Cross References. Section 13A03 is referred to in section 1501 of this title.

4 Pa.C.S. § 13A04 Commonwealth resident employment goals.

(a) Employment opportunities.--It is the goal of the General Assembly that the board promote and ensure the availability of employment opportunities for Commonwealth residents in table games and table game-related operations as authorized in this chapter. The board shall work with each certificate holder to ensure that a significant number of Commonwealth residents are employed by a certificate holder relating to table games. It is also the goal of the General Assembly that Commonwealth residents comprise at least 85% of each certificate holder's table game-related employees by the end of the third year following commencement of the conduct of table games at each certificate holder's licensed facility. (b) Review.--The board shall conduct an annual review to ascertain each certificate holder's progress in achieving the goals of this section and whether each certificate holder has taken effective and meaningful action to employ Commonwealth residents in table game-related positions at licensed facilities. The first review shall be completed one year following the award of the first table game operation certificate. Each annual review shall contain recommendations which the board determines appropriate and may be combined with any other review or study required by the board under this part. The review shall be submitted to the chairman and minority chairman of the standing committees of the Senate and of the House of Representatives with jurisdiction over this part. Cross References. Section 13A04 is referred to in section 1510 of this title.

4 Pa.C.S. § 13A11 Authorization to conduct table games.

(a) Authorization.--The board may authorize a slot machine licensee to conduct table games, including table game contests and tournaments, and to operate a system of wagering associated with the conduct of table games at the slot machine licensee's licensed facility. Authorization shall be contingent upon the slot machine licensee's agreement to ensure that slot machine and table game operations will be conducted in accordance with this part and any other conditions established by the board. Nothing in this part shall be construed to create a separate license governing the conduct of table games by slot machine licensees within this Commonwealth. (b) Number of authorized gaming tables.-- (1) A Category 1 and Category 2 slot machine licensee awarded a table game operation certificate may operate up to 250 gaming tables at any one time at its licensed facility. No more than 30% of these gaming tables may be used to play nonbanking games at any one time. Six months following the date of commencement of table game operations, the board may permit a Category 1 or Category 2 certificate holder to increase the number of gaming tables above the number authorized under this paragraph. The certificate holder shall petition the board for the increase at its licensed facility. The board, in considering the petition, shall take into account the appropriateness of the physical space where the gaming tables will be located and the convenience of the public attending the facility. The board may also take into account the potential benefit to the Commonwealth. (2) A Category 3 slot machine licensee awarded a table game operation certificate may operate up to 50 gaming tables at any one time at its licensed facility. (2.1) A Category 3 slot machine licensee awarded a table game operation certificate may petition the board for additional table games at its licensed facility. The board may authorize up to 15 additional gaming tables. The additional tables shall be used to play nonbanking games. The board, in considering the petition, shall take into account the appropriateness of the physical space where the gaming tables will be located and the convenience of the public attending the facility. The board may also take into account the potential benefit to the Commonwealth. (2.2) The following apply: (i) A Category 4 slot machine licensee may submit a petition for a table game operation certificate at a Category 4 licensed facility under section 13A12 (relating to petition requirements). A Category 4 slot machine licensee that submits a petition for a table game operation certificate under section 13A12 shall pay, at the time of submission of the petition, a one-time nonrefundable authorization fee in the amount of $2,500,000. (ii) A Category 4 slot machine licensee awarded a table game operation certificate at a Category 4 licensed facility by the board may operate up to 30 gaming tables at the licensee's licensed facility. (iii) Twelve months following the date of commencement of table game operations under subparagraph (ii), a Category 4 slot machine licensee awarded a table game operation certificate may petition the board for an increase in the number of gaming tables at the Category 4 licensed facility. The board may permit the certificate holder under this section to add up to 10 additional gaming tables at a Category 4 licensed facility. The board, in considering the petition, shall take into account the appropriateness of the physical space where the gaming tables will be located and the convenience of the public attending the facility. The board may also take into account the potential benefit to the Commonwealth. (iv) Gaming tables used in tournaments shall not be used in the calculation of the total number of gaming tables authorized in a table game authorization certificate under subparagraphs (ii) and (iii). (3) Nonbanking gaming tables shall seat a maximum of ten players. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) Amendment. Act 42 amended subsec. (b). Cross References. Section 13A11 is referred to in sections 13A22.1, 13A61 of this title.

4 Pa.C.S. § 13A12 Petition requirements.

(a) General rule.--Unless otherwise prohibited under section 13A13 (relating to prohibitions), a slot machine licensee may seek approval to conduct table games by filing a petition with the board. (b) Petition contents.--A petition seeking authorization to conduct table games shall include the following: (1) The name, business address and contact information of the petitioner. (2) The name and business address, job title and a photograph of each principal and key employee of the petitioner who will be involved in the conduct of table games and who is not currently licensed by the board, if known. (3) An itemized list of the number of gaming tables and types of table games for which authorization is being sought. (4) The estimated number of full-time and part-time employment positions that will be created at the licensed facility if table games are authorized and an updated hiring plan pursuant to section 1510(a) (relating to labor hiring preferences) which outlines the petitioner's plan to promote the representation of diverse groups and Commonwealth residents in the employment positions. (5) A brief description of the economic benefits expected to be realized by the Commonwealth, its municipalities and its residents if table games are authorized at the petitioner's licensed facility. (6) The details of any financing obtained or that will be obtained to fund an expansion or modification of the licensed facility to accommodate table games and to otherwise fund the cost of commencing table game operations. (7) Information and documentation concerning financial background and resources, as the board may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the petitioner. (8) Information and documentation, as the board may require, to establish by clear and convincing evidence that the petitioner has sufficient business ability and experience to create and maintain a successful table game operation. In making this determination, the board may consider the results of the petitioner's slot machine operation, including financial information, employment data and capital investment. (9) Information and documentation, as the board may require, to establish by clear and convincing evidence that the petitioner has or will have the financial ability to pay the authorization fee under section 13A61 (relating to table game authorization fee). (10) Detailed site plans identifying the petitioner's proposed table game area within the licensed facility. (11) If the petitioner is a Category 1 or Category 2 slot machine licensee, a waiver, on a form prescribed by the board which is signed by the petitioner and acknowledged by each of the petitioner's principals, of the following rights arising as a result of an amendment or addition to this part that took effect at the same time as the effective date of this section: (i) the petitioner's right under section 1209(f) (relating to slot machine license fee) or under any contract executed by the applicant and the department under section 1209(c) to receive the return of any portion of the slot machine license fee paid by the petitioner for its slot machine license; and (ii) the petitioner's right, if any, to sue for the return of any portion of the slot machine license fee paid by the petitioner for its slot machine license. (12) Other information as the board may require. (c) Confidentiality.--Information submitted to the board under subsection (b)(6), (7), (9), (10) and (12) may be considered confidential by the board if the information would be confidential under section 1206(f) (relating to board minutes and records). Cross References. Section 13A12 is referred to in sections 13A11, 13A13, 13A15, 13A16.1, 13A61 of this title.

4 Pa.C.S. § 13A13 Prohibitions.

(a) Slot machine licensee.--No slot machine licensee that is required as a condition of slot machine licensure to make payments to a municipality, municipal authority or other entity for an economic development project, including any project enumerated in the act of July 25, 2007 (P.L.342, No.53), known as Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007, may submit a petition under section 13A12 (relating to petition requirements) until the requirements of section 1214(a) (relating to specific authority to suspend slot machine license) are met. (b) Duties of board.--The board shall not accept or approve a petition submitted by any slot machine licensee subject to subsection (a) until the written agreement required by section 1214(a) is submitted by the slot machine licensee to the board, which shall ensure the written agreement meets the requirements of section 1214(a) and all conditions relating to the economic development project imposed by the board when awarding the slot machine license to the licensee are satisfied. (c) Construction.--Nothing in this section shall be construed to relieve a slot machine licensee of its legal obligation to make any required payments referenced under this section if the slot machine licensee elects not to petition the board for authorization to conduct table games. Cross References. Section 13A13 is referred to in sections 13A12, 13C12 of this title.

4 Pa.C.S. § 13A14 Table game authorization hearing process; public input hearings.

(a) General rule.--The board's consideration and resolution of all petitions to conduct table games shall be conducted in accordance with 2 Pa.C.S. (relating to administrative law and procedure) or with procedures adopted by order of the board. Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating to hearing and record) and 505 (relating to evidence and cross-examination) as they relate to the conduct of oral hearings, the board may adopt procedures to provide parties before it with a documentary hearing, and the board may resolve disputed material facts without conducting an oral hearing where constitutionally permissible. (b) Public input hearing requirement.-- (1) Prior to granting a petition for a slot machine licensee to conduct table games under this chapter, the board shall hold at least one public input hearing on the matter in the municipality where the petitioner's licensed facility is located. (2) A list of all witnesses scheduled to testify at a public input hearing shall be posted on the board's Internet website at least seven days prior to the hearing. The list shall be updated at least three days prior to the hearing. Additional witnesses shall be posted on the board's Internet website as they are added to the list.

4 Pa.C.S. § 13A15 Standard for review of petitions.

The board shall approve a petition if the petitioner establishes, by clear and convincing evidence, all of the following: (1) The petitioner's slot machine license is in good standing with the board. (2) The conduct of table games at the petitioner's licensed facility will have a positive economic impact on the Commonwealth, its municipalities and residents through increased revenues and employment opportunities. (3) The petitioner possesses adequate funds or has secured adequate financing to: (i) Fund any necessary expansion or modification of the petitioner's licensed facility to accommodate the conduct of table games. (ii) Pay the authorization fee in accordance with section 13A61 (relating to table game authorization fee). (iii) Commence table game operations at its licensed facility. (4) The petitioner has the financial stability, integrity and responsibility to conduct table games. (5) The petitioner has sufficient business ability and experience to create and maintain a successful table game operation. (6) The petitioner's proposed internal and external security and proposed surveillance measures within the area of the licensed facility where the petitioner seeks to conduct table games are adequate. (7) The petitioner agrees that the number of slot machines in operation at its licensed facility on October 1, 2009, will not be permanently reduced in order to install gaming tables. (8) The petitioner has executed the waiver required under section 13A12(b)(11) (relating to petition requirements) and provided any other information required by section 13A12(b).

4 Pa.C.S. § 13A16 Award of certificate.

Upon approval of a petition, the board shall award a table games operation certificate to the petitioner. Awarding of a table game operation certificate prior to the payment in full of the authorization fee required by section 13A61 (relating to table game authorization fee) shall not relieve the petitioner from complying with the provisions of section 13A61.

4 Pa.C.S. § 13A16.1 Amendment of statement of conditions.

(a) Amendment.--Upon awarding a table game operation certificate, the board shall amend the slot machine licensee's statement of conditions governing the slot machine license to include conditions pertaining to the requirements of this part. If the slot machine licensee is a Category 1 or Category 2 slot machine licensee, amendments to the statement of conditions shall include a requirement that the slot machine licensee acknowledge and honor the waiver of rights required to be filed under section 13A12(b)(11) (relating to petition requirements). (b) Sanctions.--A certificate holder that fails to abide by this part or any condition contained in the licensee's statement of conditions in the conduct of table games shall be subject to board-imposed administrative sanctions or other penalties authorized under this part.

4 Pa.C.S. § 13A17 Table game operation certificate.

The following shall apply: (1) A table game operation certificate shall be in effect unless: (i) Suspended or revoked by the board consistent with the requirements of this part. (ii) The slot machine license held by the certificate holder is suspended, revoked or not renewed by the board consistent with the requirements of this part. (iii) The certificate holder relinquishes or does not seek renewal of its slot machine license. (2) The table game operation certificate shall include an itemized list by type of table game and the number of gaming tables approved by the board and permitted in the certificate holder's licensed facility. The certificate holder may increase or decrease the number of gaming tables permitted at the licensed facility, change the type of table games played at a particular gaming table or change the configuration of gaming tables upon notice to the board and approval by a designated employee of the board. Unless approved by the board, the total number of gaming tables in operation at the licensed facility may not exceed the number authorized in the table games operation certificate. (3) A certificate holder shall be required to update the information in its initial table games petition at times prescribed by the board.

4 Pa.C.S. § 13A18 Timing of initial table game authorizations.

The board shall approve or deny a petition within 60 days following receipt of the petition.

4 Pa.C.S. § 13A21 Authorized locations for operation.

(a) Restriction.--A certificate holder shall only be permitted to operate table games at the licensed facility, a temporary facility authorized under subsection (a.1) or an area authorized under subsection (b). (a.1) Temporary facilities.--The board may permit a certificate holder to conduct table games at a temporary facility which is physically connected to, attached to or adjacent to a licensed facility for a period not to exceed 24 months. (b) Powers and duties of board.--Upon request made by a certificate holder, the board may determine the suitability of a hotel for the conduct of table games. The board may authorize the executive director to designate specific areas of a licensed facility, other than the gaming floor, or specific areas of a hotel, including conference rooms, ballrooms or other rooms, in which the certificate holder may conduct contests or tournaments. No certificate holder may be approved to conduct table games in a licensed facility or a hotel unless the areas to be designated are equipped with adequate security and surveillance equipment to ensure the integrity of the conduct of a table game contest or tournament. The certificate holder shall notify the board of the number of gaming tables that the certificate holder intends to operate during a contest or tournament, and the board shall designate an employee of the board to approve or deny the request. An authorization granted under this section may not: (1) Impose any criteria or requirements regarding the contents or structure of a hotel which are unrelated to the conduct of table games. (2) Authorize the placement or operation of slot machines in a hotel.

4 Pa.C.S. § 13A22 Commencement of table game operations.

A certificate holder may not operate or offer table games for play at a licensed facility until the board determines that: (1) The certificate holder is in compliance with the requirements of this part. (2) The certificate holder's internal controls and audit protocols are sufficient to meet the requirements of section 13A25 (relating to table game accounting controls and audit protocols). (3) The certificate holder's table game employees, where applicable, are licensed, permitted or otherwise authorized by the board to perform their respective duties. (4) The certificate holder is prepared in all respects to offer table game play to the public at the licensed facility. (5) The certificate holder has implemented necessary internal and management controls and security arrangements and surveillance systems for the conduct of table games. (6) The certificate holder is in compliance with or has complied with section 13A61 (relating to table game authorization fee).

4 Pa.C.S. § 13A22.1 Table game tournaments.

(a) Authorization.--A certificate holder may conduct tournaments at its licensed facility. (b) Submission of schedule.--The following shall apply: (1) A certificate holder that elects to conduct tournaments shall submit to the executive director of the board for approval a proposed schedule of tournaments to be conducted at the licensed facility. (2) The proposed schedule may be a weekly, monthly or annual schedule and shall include information identifying all of the following: (i) The type of table game or table games to be played at each tournament. (ii) The proposed date and time of each tournament. (iii) The proposed entry fee and any other fees associated with the tournament. (iv) The maximum number of participants. (v) Any other information as the board may require. (3) Submission of a proposed schedule shall not require the certificate holder to conduct all tournaments contained in the schedule. A certificate holder may not conduct a tournament at a date or time not contained in the schedule submitted to the executive director. (4) A certificate holder may seek to amend or modify the schedule at any time by filing a written request with the executive director. (c) Exemptions and additional tables.--The following shall apply: (1) For a Category 1, Category 2 or Category 4 licensed facility, gaming tables used in tournaments shall be exempt from section 13A11 (b)(1) (relating to authorization to conduct table games) and shall not be used in any calculation of the total number of gaming tables authorized in the table game authorization certificate. (2) For a Category 3 licensed facility, the executive director may authorize the licensed facility to operate up to 15 additional gaming tables for use in tournaments. Additional gaming tables for use in tournaments at a Category 3 licensed facility shall be exempt from section 13A11(b)(2) and shall not be used in any calculation of the total number of gaming tables authorized in the table game authorization certificate. The executive director may grant the use of additional gaming tables on the dates and times listed in the proposed schedule of tournaments submitted by the Category 3 slot machine licensee in accordance with subsection (b). (d) Seating.--A gaming table used in tournament play shall seat a maximum of ten players per table. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) Amendment. Act 42 amended subsec. (c). Cross References. Section 13A22.1 is referred to in section 1207 of this title.

4 Pa.C.S. § 13A23 Training of employees and potential employees.

(a) Adequacy.--A slot machine licensee that elects to offer table game training to its employees or potential employees shall submit to the board a detailed summary of the training program demonstrating the adequacy of the training. (b) Authorization.--Notwithstanding any provision of this part to the contrary, the executive director of the board may authorize a slot machine licensee to conduct table game training and instruction for the slot machine licensee's employees and potential employees. (c) Effect.--Authorization granted under subsection (b) shall do all of the following: (1) Permit a slot machine licensee to conduct training at a location within the licensed facility or at another location. (2) Require any training authorized on the gaming floor to be conducted in a specified area of the gaming floor that is clearly identified as a training area and not accessible to the public. (3) Designate a secure area at the location where the training will take place for the storage of table game devices and associated equipment used for training. (4) Limit the number of table game devices and associated equipment to that necessary to conduct training. (5) Prohibit the payment of any cash, cash equivalent or other prize to an individual as a result of play conducted during training or play conducted utilizing table game devices or associated equipment obtained under section 13A23.1 (relating to training equipment). (6) Prohibit a slot machine licensee from charging its employees or potential employees a fee to participate in the training. (c.1) Rescission or revocation.--An authorization granted by the executive director under subsection (b) may be rescinded or revoked by the executive director or the board without cause. The slot machine licensee shall be given notice that the authorization has been rescinded or revoked and afforded a reasonable time to take all necessary actions required by the executive director or the board. (d) Prohibition.--The board shall be prohibited from charging a fee as a condition of receiving authorization under subsection (b). Cross References. Section 13A23 is referred to in section 13A23.1 of this title.

4 Pa.C.S. § 13A23.1 Training equipment.

(a) Acquisition.--Notwithstanding section 1317 (relating to supplier licenses) or section 1317.1 (relating to manufacturer licenses), for a one-year period following the effective date of this section, a slot machine licensee may purchase, lease or otherwise obtain table game devices or associated equipment that will be used for the sole purpose of conducting table game training authorized under section 13A23 (relating to training of employees and potential employees) from a manufacturer or supplier, whether or not licensed or otherwise approved by the board under this part, or from an affiliate of the slot machine licensee or a gaming facility in another jurisdiction. (b) Identification.--Table game devices or associated equipment obtained by a slot machine licensee pursuant to subsection (a) shall have an identification number which shall be kept on file with the board, and the table game devices or associated equipment shall be clearly identified as being used for training purposes only. (c) Prohibition.-- (1) Table game devices and associated equipment obtained pursuant to this section shall be prohibited from being used on the gaming floor unless being used for training purposes pursuant to section 13A23(c)(2). (2) The payment of any cash, cash equivalent or other prize to an individual from the play of a table game on table game devices or associated equipment obtained pursuant to this section is prohibited. Cross References. Section 13A23.1 is referred to in sections 1317.1, 13A23 of this title.

4 Pa.C.S. § 13A24 Condition of continued operation.

As a condition of continued operation, a certificate holder shall agree to maintain all books, records and documents pertaining to table games in a manner and location within this Commonwealth as approved by the board. All books, records and documents related to table games shall: (1) be segregated by separate accounts within the slot machine licensee's books, records and documents, except for any books, records or documents that are common to both slot machine and table game operations; (2) be immediately available for inspection upon request of the board, the bureau, the department, the Pennsylvania State Police or the Attorney General, or agents thereof, during all hours of operation of the licensed facility in accordance with regulations promulgated by the board; and (3) be maintained for a period as the board, by regulation, may require.

4 Pa.C.S. § 13A25 Table game accounting controls and audit protocols.

(a) Approval.--Prior to the commencement of table game operations, a certificate holder shall submit to the board for approval all proposed site plans, internal control systems and audit protocols for the certificate holder's table game operations. (b) Minimum requirements.--A certificate holder's internal controls and audit protocols shall: (1) Safeguard its assets and revenues, including the recording of cash, cash equivalents and evidences of indebtedness related to table games. (2) Provide for reliable records, accounts and reports of any financial event that occurs in the conduct of table games, including reports to the board related to table games. (3) Provide for accurate and reliable financial records related to table games. (4) Establish procedures for all the following: (i) The receipt, storage and disbursal of chips, cash and cash equivalents used in table games. (ii) Conversion of cash equivalents to cash. (iii) The redemption of chips and other representations of value used in table games and the payment of winnings and prizes. (iv) The recording of financial transactions pertaining to table games. (5) Establish procedures for the collection and security of cash and cash equivalents at the gaming tables. (6) Establish procedures for the recording of and transfer of chips and cash equivalents between the gaming tables and the cashier's cage. (7) Establish procedures for the transfer of drop boxes from the gaming tables to the count room. (8) Establish procedures and security for the counting and recording of gross table game revenue. (9) Establish procedures for the security, storage and recording of cash and cash equivalents utilized in table games. (10) Establish procedures and security standards for the handling and storage of table game devices and associated equipment used in connection with table games. (11) Establish procedures and rules governing the conduct of each table game and the responsibility of employees related to table games. (12) Establish procedures for the collection and recording of revenue from poker and other table games when played as nonbanking games, including the type of rake utilized and the methodology for calculating the amount of permissible rake. (13) Ensure that any wagering permitted in the play of a table game is implemented only in accordance with the certificate holder's general or specific authorization, as approved by the board. (14) Ensure the proper and timely accounting of gross table game revenue and the calculation of gross table game revenue, fees, taxes and assessments based on the gross table game revenue. (15) Maintain accountability for assets, ensure that recorded accountability for assets is compared with actual assets at reasonable intervals and ensure that appropriate action is taken with respect to any discrepancies. (16) Ensure that all functions, duties and responsibilities related to table game operations are appropriately segregated and performed in accordance with sound financial practices by qualified employees. (17) Permit use of its licensed facility by the board, the bureau and other persons authorized under this part or by the board to facilitate their ability to perform regulatory and oversight functions under this chapter. (c) Submission to board.--The submission required under subsection (a) shall include a detailed description of the certificate holder's administrative and accounting procedures related to table games, including its written system of internal controls. Each written system of internal controls shall include: (1) An organizational chart depicting appropriate functions and responsibilities of employees involved in both slot machine operations and table game operations. (2) A description of the duties and responsibilities of each position shown on the organizational chart. (3) The record retention policy of the certificate holder. (4) The procedure to be utilized to ensure that assets are safeguarded, including mandatory count procedures. (5) A detailed narrative description of the administrative and accounting procedures in place to ensure compliance with the requirements of section 13A26 (relating to cash equivalents). (6) A statement signed by the certificate holder's chief financial officer or other competent person attesting that the signatory believes, in good faith, that the system satisfies the requirements of this section. (d) Review.--Prior to authorizing a certificate holder to conduct table games, the board shall review the system of internal controls submitted under subsection (c) to determine whether it conforms to the requirements of this part and whether it provides adequate and effective controls for the conduct of table games. Cross References. Section 13A25 is referred to in section 13A22 of this title.

4 Pa.C.S. § 13A26 Cash equivalents.

(a) Checks.-- (1) A certificate holder may accept a check from a patron in exchange for cash or chips. The certificate holder shall present each check for payment to the financial institution upon which the check is drawn within ten days of receipt by the certificate holder. No third party checks shall be permitted. (2) Notwithstanding any law to the contrary, checks cashed in conformity with the requirements of this section or 13 Pa.C.S. Div. 3 (relating to negotiable instruments) shall be valid instruments, enforceable at law in the courts of this Commonwealth. Any check cashed, transferred, conveyed, given or accepted in violation of this section shall be invalid and unenforceable for the purposes of collection by a certificate holder but shall be included in the calculation of gross table game revenue. (b) Notice of fees.--All fees charged for the conversion of cash equivalents shall be disclosed. (c) Payment of cash equivalents.--Other than credit extended by a certificate holder, an instrument that constitutes a cash equivalent shall be made payable to the slot machine licensee, to the bearer or to cash. An instrument made payable to a third party shall not be considered a cash equivalent and shall be prohibited. Cross References. Section 13A26 is referred to in sections 13A25, 1504 of this title.

4 Pa.C.S. § 13A27 Other financial transactions.

(a) Credit.-- (1) Notwithstanding section 1504 (relating to wagering on credit), a certificate holder may extend interest-free, unsecured credit to patrons for the purpose of playing slot machines or table games in accordance with this section; however, a certificate holder shall not accept credit cards, charge cards or debit cards from a patron or player for the exchange or purchase or chips, slot machine or table game credits or for an advance of coins or currency to be utilized by a player to play slot machine or table games. No credit card advance machine may be placed on the gaming floor. (2) Prepaid access instruments are not deemed to be a credit card, charge card, debit card or any other instrument of credit and are not prohibited under this section. A device or other mechanism that allows or facilitates the funding of a prepaid access instrument shall not be deemed a credit card advance machine under this section. (b) Credit applications.--Each application for credit submitted by a patron to a certificate holder shall be maintained in a confidential credit file. The application shall include the patron's name, address, telephone number and comprehensive bank account information, the requested credit limit, the patron's approximate amount of current indebtedness, the amount and source of income in support of the application, the patron's signature on the application, a certification of truthfulness and any other information deemed relevant by the certificate holder. The certificate holder shall notify each applicant that, as a condition of receiving credit, the certificate holder will verify identity and indebtedness information through a credit bureau or casino credit bureau and, if appropriate, through direct contact with other slot machine licensees. (c) Credit application verification.--Prior to approving an application for credit, a certificate holder shall verify: (1) The identity, creditworthiness and indebtedness information of the applicant by conducting a comprehensive review of the information submitted with the application and any information regarding the applicant's credit activity at other licensed facilities which the certificate holder may obtain through a casino credit bureau and, if appropriate, through direct contact with other slot machine licensees. (2) That the applicant's name is not included on an exclusion list under section 1514 (relating to regulation requiring exclusion, ejection or denial of access of certain persons) or 1516 (relating to list of persons self excluded from gaming activities) or the voluntary credit suspension list under subsection (h). (d) Establishment of credit.--Upon completion of the verification required under subsection (c), a certificate holder may grant a patron credit. The certificate holder shall establish a credit limit for each patron to whom the certificate holder grants credit. Each applicant's credit limit shall be approved by two or more employees of the certificate holder holding the job positions of credit manager, assistant credit manager, credit shift manager, credit executive or a key employee in a direct reporting line above the manager or credit manager. The approval shall be recorded in the applicant's credit file and shall include the reasons and information relied on for the approval of credit and verification by the employees approving the applicant's credit limit. Increases to an individual's credit limit may be approved following a written request from the individual and reverification of an individual's credit information. (e) Recordkeeping.--Detailed information pertaining to all transactions affecting an individual's outstanding indebtedness to a certificate holder shall be recorded in chronological order in the individual's credit file. (f) Reduction or suspension of credit.--A certificate holder may reduce an individual's credit limit or suspend credit to an individual for any reason. (g) Voluntary credit suspension.--An individual may request a certificate holder to suspend the individual's credit. Each certificate holder shall inform the board when an individual requests a suspension of credit and shall provide the board with all information necessary to maintain the voluntary credit suspension list under subsection (h). (h) Voluntary credit suspension list.--The board shall maintain a voluntary credit suspension list of all individuals who have requested suspension of credit privileges and shall provide the list on a continuous basis to the credit department of each certificate holder. An individual may request placement on the voluntary credit suspension list by submitting to the board the individual's name, address and date of birth. The individual does not need to provide a reason for the request. Notwithstanding any other provision of law to the contrary, the board's list of individuals who have had credit privileges voluntarily suspended shall be confidential, and neither the board nor the credit department of a certificate holder shall divulge the name of any individual on this list to any person or entity other than those provided for in this subsection. To be removed from the list, the individual shall submit a request to the board. The board shall remove the individual from the list and inform the credit department of each certificate holder not later than three business days after the board's receipt of the request. (i) Liability.--A certificate holder or employee thereof shall not be liable to any individual on the voluntary credit suspension list or to any other party in any judicial proceeding for any harm, monetary or otherwise, which may arise as a result of: (1) the failure of a certificate holder to restore credit privileges to an individual on the voluntary credit suspension list; or (2) otherwise permitting an individual on the voluntary credit suspension list to engage in gaming activity in the licensed facility while on the voluntary credit suspension list. (j) Tax liability.--Draws against unsecured credit extended to patrons pursuant to this section which become uncollectible may not be claimed by a certificate holder as a deduction, credit or any other type of reduction or offset against any tax imposed by this part or the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 amended subsecs. (a) and (c). Cross References. Section 13A27 is referred to in section 1611 of this title.

4 Pa.C.S. § 13A28 Key employees and occupation permits.

Nothing in this part shall be construed to require any individual who holds a principal license, a key employee license or gaming employee license under Chapter 13 (relating to licensees) to obtain a separate license or permit to be employed in a certificate holder's table game operation authorized under this chapter.

4 Pa.C.S. § 13A29 Application of Clean Indoor Air Act.

For the purpose of section 3(b)(11) of the act of June 13, 2008 (P.L.182, No.27), known as the Clean Indoor Air Act, the term "gaming floor" shall include the areas of any licensed facility where the slot machine licensee is authorized to place and operate slot machines or conduct table games, except such areas off the gaming floor where contests or tournaments are conducted unless smoking is otherwise permitted in such areas.

4 Pa.C.S. § 13A29.1 Application of Liquor Code.

The provisions of section 493(24)(ii) of the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, shall also apply to table games.

4 Pa.C.S. § 13A41 Table game device and associated equipment testing and certification standards.

(a) Expansion of independent testing and certification facility.--Within one year of the effective date of this section, the board shall expand the independent testing and certification facility created under section 1320(b) (relating to slot machine testing and certification standards) to include the testing and certification of table game devices and associated equipment. Costs associated with the expansion of the facility shall be assessed on manufacturers licensed to manufacture table game devices or associated equipment under this part in accordance with a schedule adopted by the board. The expanded facility shall be made available to each table game device manufacturer and supplier as determined by the board. (b) Use of other state standards.--The board may determine whether the table game device testing and certification standards of another jurisdiction within the United States in which a manufacturer licensed pursuant to section 1317.1 (relating to manufacturer licenses) to manufacture table game devices or associated equipment used in connection with table games is licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this part. If the board makes that determination, it may permit the manufacturer appropriately licensed pursuant to section 1317.1 to deploy table game devices or associated equipment it manufactures which have met the table game device testing and certification standards in another jurisdiction without undergoing the full testing and certification process by the board's independent testing and certification facility. (b.1) Use of private testing and certification facilities.--Notwithstanding any provision of this part or regulation of the board, if a table game device or associated equipment is tested and certified by a private testing and certification facility registered with the board, the board shall use an abbreviated certification process requiring only that information determined by it to be necessary to consider the issuance of a table game device or associated equipment certification under this section. Within one year of the effective date of this subsection, the board shall promulgate regulations that: (1) Provide for the registration of private testing and certification facilities. Persons seeking registration under this subsection shall be subject to section 1202(b)(9) (relating to general and specific powers). (2) Specify the form and content of the application for registration. (3) Establish and collect an application fee for persons seeking registration. The application fee shall include the costs of all background investigations as determined necessary and appropriate by the board. (4) Establish uniform procedures and standards which private testing and certification facilities must comply with during the testing and certification of table game devices and associated equipment. (5) Utilize information provided by private testing and certification facilities for the abbreviated certification of table game devices or associated equipment. (6) Establish an abbreviated certification process that may be used by registered private testing and certification facilities to test and certify table game devices or associated equipment. (7) Establish fees that must be paid by a licensed manufacturer. (8) Require table game devices and associated equipment submitted for abbreviated certification to be approved or denied by the board within 30 days from the date of submission to the board. If the board fails to act within the 30-day period, the abbreviated certification shall be deemed conditionally approved. (9) Provide procedures and standards for the suspension and revocation of the registration of a private testing and certification facility and the reinstatement of a suspended or revoked registration. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added subsec. (b.1).

4 Pa.C.S. § 13A61 Table game authorization fee.

(a) Amount of authorization fee.-- (1) A Category 1 or a Category 2 slot machine licensee that submits a petition for a table game operation certificate under section 13A12 (relating to petition requirements) on or before June 1, 2010, shall pay a one-time nonrefundable authorization fee in the amount of $16,500,000. A Category 1 or a Category 2 slot machine licensee that submits a petition for a table game operation certificate under section 13A12 after June 1, 2010, shall pay a one-time nonrefundable authorization fee in the amount of $24,750,000. (2) A Category 3 slot machine licensee that submits a petition for a table game operation certificate under section 13A12 on or before June 1, 2010, shall pay a one-time nonrefundable authorization fee in the amount of $7,500,000. A Category 3 slot machine licensee that submits a petition for a table game operation certificate under section 13A12 after June 1, 2010, shall pay a one-time nonrefundable authorization fee in the amount of $11,250,000. (3) Notwithstanding paragraphs (1) and (2), the holder of a Category 1 or Category 3 slot machine license issued after June 1, 2010, that submits a petition for a table game operation certificate shall pay a one-time nonrefundable authorization fee in the amount of $16,500,000 or $7,500,000, respectively. (3.1) Notwithstanding any other provision of this part, no later than 60 days after the board approves a request for additional table games in accordance with section 13A11 (relating to authorization to conduct table games) submitted by a Category 3 slot machine licensee, the Category 3 slot machine licensee shall pay a one-time nonrefundable fee in the amount of $1,000,000. The fee shall be deposited into the General Fund. (4) A table game operation certificate shall not be subject to renewal or payment of an additional authorization fee. (b) Payment of fee.--A slot machine licensee that submits a petition on or before June 1, 2010, shall pay the required authorization fee on or before June 1, 2010. The board may allow the fee to be paid in installments, provided all installments are paid on or before June 1, 2010. In that event, the board and the slot machine licensee shall enter into a written agreement setting forth the terms of payment. (c) Failure to pay by deadline.--If a petitioner or certificate holder fails to pay the required authorization fee in full by June 1, 2010, the board shall impose a penalty and may grant the petitioner or certificate holder up to a six-month extension to pay the authorization fee or any remaining portion of the authorization fee and the penalty. The board shall require the petitioner or certificate holder to make weekly payments until the fee and penalty are paid in full. (d) Suspension of certificate.--The board shall suspend the table game operation certificate if the certificate holder fails to pay the total authorization fee and the penalty prior to the expiration of an extension period granted under subsection (c). The suspension shall remain in effect until final payment is made. (e) (Reserved). (f) Deposit of fees.--Notwithstanding section 1208 (relating to collection of fees and fines), all table game authorization fees or penalties received by the board under this subchapter, all table game device and associated equipment manufacturer and supplier license fees, all table game device or associated equipment manufacturer and supplier renewal fees and fees for licenses issued under Chapter 16 (relating to junkets) shall be deposited in the General Fund. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added subsec. (a)(3.1). Cross References. Section 13A61 is referred to in sections 1309, 13A12, 13A15, 13A16, 13A22 of this title.

4 Pa.C.S. § 13A62 Table game taxes.

(a) Imposition.-- (1) Except as provided in paragraph (2), each certificate holder and a Category 4 slot machine licensee who is a holder of a table game operation certificate at a Category 4 licensed facility shall report to the department and pay from its daily gross table game revenue, on a form and in the manner prescribed by the department, a tax of 12% of its daily gross table game revenue. (2) In addition to the tax payable under paragraph (1), each certificate holder and Category 4 slot machine licensee who is a holder of a table game operation certificate at a Category 4 licensed facility shall report to the department and pay from its daily gross table game revenue, on a form and in the manner prescribed by the department, a tax of 34% of its daily gross table game revenue from each table game played on a fully automated electronic gaming table. (3) (Deleted by amendment). (b) Deposits and distributions.-- (1) The tax imposed under subsection (a) shall be payable to the department on a weekly basis and shall be based upon gross table game revenue derived during the previous week. (2) All funds owed to the Commonwealth under this section shall be held in trust for the Commonwealth by the certificate holder until the funds are paid to the department. Unless otherwise agreed to by the board, a certificate holder shall establish a separate bank account into which gross table game revenue shall be deposited and maintained until such time as the funds are paid to the department under this section or paid into the fund under section 13A63(a) (relating to local share assessment). (3) The tax imposed under subsection (a) shall be deposited into the General Fund. (c) Deposits for property tax relief.--(Repealed). (Oct. 30, 2017, P.L.419, No.42, eff. imd.; July 8, 2022, P.L.513, No.53, eff. imd.) 2022 Repeal. Act 53 repealed subsec. (c). 2017 Amendment. Act 42 amended subsec. (a). Cross References. Section 13A62 is referred to in section 13A63 of this title.

4 Pa.C.S. § 13A63 Local share assessment.

(a) Required payment.--In addition to the tax imposed under section 13A62 (relating to table game taxes), each certificate holder shall pay on a weekly basis and on a form and in a manner prescribed by the department a local share assessment into a restricted receipts account established within the fund. All funds owed under this section shall be held in trust by the certificate holder until the funds are paid into the account. Funds in the account are hereby appropriated to the department on a continuing basis for the purposes set forth in this section. (a.1) Required payment for Category 4 licensees.--In addition to the tax imposed under section 13A62, each Category 4 slot machine licensee who is a holder of a table game operation certificate at a Category 4 licensed facility shall pay on a weekly basis and on a form and in a manner prescribed by the department a local share assessment into a restricted receipts account established within the fund. All funds owed under this section shall be held in trust by the Category 4 slot machine licensee who is a holder of a table game operation certificate at a Category 4 licensed facility until the funds are paid into the account. Funds in the account shall be added to and distributed with the funds distributed under section 1403(c.1) (relating to establishment of State Gaming Fund and net slot machine revenue distribution). (b) Distributions to counties.--The department shall make quarterly distributions from the local share assessments deposited into the fund under subsection (a) to counties, including home rule counties, hosting a licensed facility authorized to conduct table games under this chapter in accordance with the following: (1) If the licensed facility is a Category 1 licensed facility located at a harness racetrack and the county, including a home rule county, in which the licensed facility is located is: (i) A county of the third class: 50% of the licensed facility's local share assessment shall be added to and distributed with the funds distributed under section 1403(c)(2)(i)(D). (ii) A county of the second class A: 50% of the licensed facility's local share assessment shall be distributed to the county. (iii) A county of the fourth class: 50% of the licensed facility's local share assessment shall be added to the funds in the restricted receipts account established pursuant to section 1403(c)(2)(i)(E) for distribution with those funds. (iv) A county of the fifth class: 50% of the licensed facility's local share assessment shall be added to the funds in the restricted receipts account established pursuant to section 1403(c)(2)(i)(F) for distribution with those funds. (2) If the facility is a Category 1 licensed facility that is located at a thoroughbred racetrack and the county in which the licensed facility is located is: (i) A county of the second class A: 50% of the licensed facility's local share assessment shall be distributed to the county to be further distributed as grants to a nonprofit hospital in a first class township that is contiguous to the municipality in which the licensed facility is located. If the nonprofit hospital ceases to exist, 50% of the licensed facility's local share assessment shall be distributed to the county in which the licensed facility is located. (ii) Except as set forth in subparagraph (iii), a county of the third class: 50% of the licensed facility's local share assessment shall be distributed to the county to be used solely to fund the establishment of a county violent crime task force to reduce gang violence, gun trafficking and violence and drug-related crimes in the county. The district attorney shall appoint, direct and coordinate the operations and personnel of the task force. (iii) A county of the third class which is also a home rule county: 100% of the licensed facility's local share assessment shall be distributed to a community college that is established in the county after the effective date of this subparagraph and prior to January 1, 2014, to be used by the community college for organizational, administrative, operating and capital expenditures and the payment of principal, interest and expenses related to indebtedness, subject to the following: (A) Until January 1, 2014, or until a community college is established after the effective date of this subparagraph prior to January 1, 2014, whichever occurs first, 100% of the licensed facility's local share assessment shall be distributed to the county redevelopment authority to be deposited and maintained by the county redevelopment authority in a restricted receipts account. The funds may be invested by the county redevelopment authority as permitted by law, and any interest earned on the funds and investment income derived from the funds shall be deposited into the restricted receipts account. The funds in the restricted receipts account shall be distributed as provided in clause (B) or used as provided in clause (C), as applicable. (B) If a community college is established in the county following the effective date of this subparagraph and prior to January 1, 2014, the funds in the restricted receipts account established under clause (A) shall be distributed in their entirety by the county redevelopment authority to the community college no later than 60 days following the date of the establishment of the community college. (C) If a community college is not established in the county following the effective date of this subparagraph and prior to January 1, 2014, beginning January 1, 2014, 100% of the licensed facility's local share assessment shall be distributed to the county redevelopment authority to be deposited into the restricted receipts account established under clause (A), and all funds in the restricted receipts account shall be used by the county redevelopment authority for a revolving loan program available to municipalities within the county for infrastructure projects, including, but not limited to, water, sewer, storm water management, flood control, roads, broadband Internet access, site remediation and public utility infrastructure in areas other than a public utility's own facilities. The county redevelopment authority may use funds from the revolving loan program for expenses related to the cost to administer the revolving loan program in an amount not in excess of 0.5% of the revolving loan program portfolio in a given calendar year. A municipality may not use funds received under the revolving loan program for general budget or operating expenses. The county redevelopment authority shall develop loan program criteria and guidelines consistent with the provisions of this clause. (D) For purposes of this subparagraph, a community college shall be considered to be established on the date on which the proposed community college plan is approved by the State Board of Education within the meaning of section 1903-A(c) of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, notwithstanding the fact that a board of trustees of the community college may not have yet been appointed by the governing bodies of the local sponsor of the community college. (3) If the facility is a Category 2 licensed facility and if the county in which the licensed facility is located is: (i) A county of the first class: 100% of the licensed facility's local share assessment shall be distributed to a city of the first class. (ii) A county of the second class: 50% of the licensed facility's local share assessment shall be distributed as follows: (A) Eighty-five percent shall be deposited into a restricted receipts account to be established in the Department of Education for distribution pursuant to the act of June 14, 1961 (P.L.324, No.188), known as The Library Code, for grants to an established library system in the county but outside a city of the second class. Funds made available under this clause shall be in addition to any funding provided to such libraries pursuant to the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, the Public School Code of 1949 and The Library Code. Notwithstanding The Library Code, in making distributions from funds made available under this clause, the library system shall distribute the funds as follows: (I) At least 80% shall be distributed to libraries in the library system in the county but outside a city of the second class on a per capita basis of the population of the county based on the most recent decennial census excluding a city of the second class. (II) At least 15%, but not more than 20%, shall be distributed to libraries in the library system in each city, borough, town or township in the county outside a city of the second class, which has a market value per capita below the fifth percentile of all cities, boroughs, towns or townships, with comparable classifications. The market value per capita and percentiles under this subclause shall be as determined annually by the State Tax Equalization Board. (III) Not more than 5% may be used to defray the reasonable and necessary administrative costs of the library system in administering the funds, as determined by the Department of Education. (IV) If, after the distribution and use under subclauses (I), (II) and (III), funds are still available for distribution under this clause, those funds shall be shall be distributed to libraries in the library system in the county but outside a city of the second class on a per capita basis of the population of the county based on the most recent decennial census excluding a city of the second class. (B) Fifteen percent to a recognized tourist promotion agency that is established by a home rule municipality that was formerly a township or borough located in the county pursuant to the act of July 4, 2008 (P.L.621, No.50), known as the Tourist Promotion Act, and recognized by the Department of Community and Economic Development and the home rule municipality. (iii) A county of the third class where a city of the third class hosting the licensed facility is located in two counties of the third class: 50% of the licensed facility's local share assessment shall be distributed as follows: (A) Sixty percent to the county in which the licensed facility is located for economic development projects, community improvement projects and other projects in the public interest within the county. (B) Twenty percent to the nonhost city of the third class in the county in which the licensed facility is located. (C) Twenty percent to the nonhost county in which the host city is located, of which 50% shall be deposited into a restricted receipts account to be established in the Commonwealth Financing Authority to be used exclusively for economic development projects, community improvement projects and other projects in the public interest within the nonhost county, with priority given to municipalities contiguous to the host city. (iv) A county of the fifth class: 50% of the licensed facility's local share assessment shall be distributed as follows: (A) Fifty percent shall be added to the funds in the restricted receipts account established pursuant to section 1403(c)(2)(iii)(F)(I) for distribution with those funds. (B) Fifty percent shall be transferred to the Pennsylvania Higher Education Assistance Agency for deposit into a restricted receipts account to be used exclusively for grants to a school of medicine located in a city of the second class A within a county of the third class for operating costs associated with the school of medicine. (4) The following apply: (i) If the facility is a Category 3 licensed facility located in a county of the second class A: 50% of the licensed facility's local share assessment shall be distributed as follows: (A) Seventy-five percent shall be distributed to the county hosting the licensed facility from each such licensed facility for the purpose of supporting the maintenance and refurbishment of the Parks and Heritage sites throughout the county in which the licensee is located. (B) Twelve and one-half percent shall be distributed to the county hosting the licensed facility from each such licensed facility for the purpose of supporting a child advocacy center located within the county in which the licensee is located. (C) Twelve and one-half percent shall be distributed to the county hosting the licensed facility from each such licensed facility for the purpose of supporting an organization providing comprehensive support services to victims of domestic violence, including legal and medical aid, shelters, transitional housing and counseling located within the county in which the licensee is located. (ii) Except as provided in subparagraph (i), if the facility is a Category 3 licensed facility in a county of any class: 50% of the licensed facility's local share assessment shall be added to the funds in the restricted receipts account established under section 1403(c)(2)(iv) for distribution with those funds. (5) Except as otherwise provided in this subsection, if the facility is a Category 1 or a Category 2 licensed facility in a county of any class: 50% of the licensed facility's local share assessment shall be distributed in accordance with section 1403(c) based upon the category and type of licensed facility and the classification of the county where the licensed facility is located. (c) Distributions to municipalities.--The department shall make quarterly distributions from the local share assessments deposited into the fund under subsection (a) to municipalities, including home rule municipalities, hosting a licensed facility authorized to conduct table games under this chapter in accordance with the following: (1) If the licensed facility is a Category 2 licensed facility and is located in a city of the second class, 50% of the licensed facility's local share assessment shall be deposited into a restricted receipts account to be established in the Department of Education for distribution pursuant to The Library Code for grants to an established local library in the city for the purpose of maintaining the library branch system. Funds made available under this clause shall be in addition to any funding provided to such libraries pursuant to The Fiscal Code, the Public School Code of 1949 and The Library Code. Beginning July 1, 2011, if the established local library fails to maintain the number of library branches operating within its system on June 30, 2011, 50% of the licensed facility's local share assessment shall be distributed to the city to be used solely to fund the accrued liability of all pension plans maintained by the city. (2) If the licensed facility is a Category 1 licensed facility located at a harness racetrack in a city of the third class, 50% of the licensed facility's local share assessment shall be distributed to the city for the purpose of making payments to enable the city and other municipalities in the school district in which the city is located to become and remain local sponsors or members of a community college. Payments may include initial buy-in costs, including payment of debt service to fund the initial buy-in, and annual local sponsor share payments to the community college. Any funds remaining following the payment of all local sponsorship, membership and other costs authorized under this paragraph may be retained by the city and used for any lawful purpose. (3) If a licensed facility is a Category 2 facility and is located in a city of the third class and the city is located in more than one county of the third class, 50% of the licensed facility's local share assessment shall be distributed as follows: (i) 50% to the host city; (ii) 20% to a city of the third class located solely in the nonhost county in which the host city of the third class is also located; and (iii) 30% to a nonhost city of the third class located solely in the host county. (4) If the licensed facility is a Category 1 licensed facility located at a harness racetrack in a township of the first class, 50% of the licensed facility's local share assessment shall be distributed to the township, subject, however, to the budgetary limitation in this paragraph. The amount distributed to the township shall not exceed 50% of the township's total budget for fiscal year 2009, adjusted for inflation in subsequent years by an amount not to exceed an annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index immediately prior to the date the adjustment is due to take effect. Any funds not distributed to the township because of the budgetary limitation shall be distributed in accordance with subsection (b) based upon the classification of the county where the licensed facility is located. (5) The following apply: (i) Except as provided in subparagraphs (ii) and (iii), if the licensed facility is a Category 1 or Category 2 licensed facility and is located in a township of the second class, 50% of the licensed facility's local share assessment shall be distributed to the township, subject, however, to the budgetary limitation in this subparagraph. The amount distributed to the township shall not exceed 50% of the township's total budget for fiscal year 2009, adjusted for inflation in subsequent years by an amount not to exceed an annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index immediately prior to the date the adjustment is due to take effect. Any funds not distributed to the township because of the budgetary limitation shall be distributed in accordance with subsection (b) based upon the classification of county where the licensed facility is located. No funds shall be distributed under this subparagraph to a township of the second class located in a county of the third class receiving any funds under subsection (b)(2)(iii). (ii) If the licensed facility is a Category 1 licensed facility located at a thoroughbred racetrack in a township of the second class in a county of the second class A, 50% of the licensed facility's local share assessment shall be distributed to the township of the second class, subject, however, to the budgetary limitation in this subparagraph. The amount distributed shall not exceed 50% of the department's total budget for fiscal year 2009, adjusted for inflation in subsequent years by an amount not to exceed an annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index immediately prior to the date the adjustment is due to take effect. Any funds not distributed to the recreation department because of the budgetary limitation shall be distributed in accordance with subsection (b) based upon the classification of county where the licensed facility is located. (iii) If the licensed facility is a Category 1 licensed facility located at a thoroughbred racetrack in a township of the second class in a county of the third class with a population of not less than 200,000 but not more than 260,000 where the licensed facility and all attached or contiguous acreage owned by the licensed facility is located in more than one township of the second class, 50% of the licensed facility's local share assessment shall be distributed as follows: (A) $120,000 of the licensed facility's local share assessment shall be distributed annually to each such township of the second class; and (B) remaining funds shall be added to and distributed with the funds distributed to the county under subsection (b)(2)(ii). (6) The following apply: (i) If the licensed facility is a Category 3 licensed facility and is located in a borough in a county of the third class and the borough is contiguous to a city of the third class: (A) Twenty-five percent of the licensed facility's local share assessment shall be distributed to the host borough, subject to clause (C). (B) Twenty-five percent of the licensed facility's local share assessment shall be distributed to the city of the third class that is contiguous to the host borough, subject to clause (C). (C) The amount distributed to the borough or the city shall not exceed 50% of the borough's or the city's total budget for fiscal year 2009, adjusted for inflation in subsequent years by an amount not to exceed an annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index immediately prior to the date the adjustment is due to take effect. Any funds not distributed to the borough or the city because of the budgetary limitation shall be distributed in accordance with subsection (b) based upon the classification of the county where the licensed facility is located. (ii) Except as provided in subparagraph (i), if the licensed facility is a Category 3 licensed facility and is located in a municipality of any class, 50% of the licensed facility's local share assessment shall be distributed to the municipality, subject, however, to the budgetary limitation in this subparagraph. The amount distributed to the municipality shall not exceed 50% of the municipality's total budget for fiscal year 2009, adjusted for inflation in subsequent years by an amount not to exceed an annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index immediately prior to the date the adjustment is due to take effect. Any funds not distributed to the municipality because of the budgetary limitation shall be distributed in accordance with subsection (b) based upon the classification of county where the licensed facility is located. (7) Except as otherwise provided in this subsection, if the facility is a Category 1 or a Category 2 licensed facility in a municipality of any class, 50% of the licensed facility's local share assessment shall be distributed to the municipality, subject, however, to the budgetary limitation in this paragraph. The amount distributed to the municipality shall not exceed 50% of the municipality's total budget for fiscal year 2009 adjusted for inflation in subsequent years by an amount not to exceed the annual cost-of-living adjustment calculated by applying the percentage change in the Consumer Price Index immediately prior to the date the adjustment is due to take effect. Any funds not distributed to the municipality because of the budgetary limitation shall be distributed in accordance with subsection (b) based upon the classification of county where the licensed facility is located. (d) Construction.--The following shall apply to distributions provided for in this section: (1) Distributions to counties shall be based upon county classifications in effect on the effective date of this section, and any reclassification of a county as a result of a Federal decennial census or pursuant to an act of the General Assembly shall not apply to this section unless the act of the General Assembly specifically provides otherwise. (2) Distributions to municipalities shall be based upon municipal classifications in effect on the effective date of this section, and any reclassification of a municipality as a result of a Federal decennial census or pursuant to an act of the General Assembly shall not apply to this section unless the act of the General Assembly specifically provides otherwise. (e) Miscellaneous provisions.-- (1) If any provision of this section is found to be unenforceable for any reason, the distribution provided for in such unenforceable provision shall be made to the municipality in which the licensed facility is located. (2) References to the Consumer Price Index shall mean the Consumer Price Index for All Urban Consumers for the Pennsylvania, New Jersey, Delaware and Maryland area for the most recent 12-month period for which figures have been officially reported by the United States Department of Labor, Bureau of Labor Statistics. (3) A person or its affiliated entity or a political subdivision may not compensate or incur an obligation to compensate a person to engage in lobbying for compensation contingent in whole or in part upon the approval, award, receipt or denial of funds under this section. A person or its affiliated entity may not engage in or agree to engage in lobbying for compensation contingent in whole or in part upon the approval, award, receipt or denial of funds under this section. A violation of this paragraph shall be considered an intentional violation of 65 Pa.C.S. § 13A09(e) (relating to penalties). This paragraph shall not apply to a county or municipality that compensates a person to prepare a grant application for funds under this section if all of the following requirements are met: (i) The person is not identified in the application. (ii) The person has no direct contact with the agency, county or municipality providing the funding. (iii) The person is paid a fixed fee or percentage of the amount of any funds approved, awarded or received of up to 0.5%. (4) In cooperation with the department, the Office of the Budget and the Commonwealth Financing Authority, the Department of Community and Economic Development shall submit an annual report on all distributions of local share assessments to counties and municipalities under this section to the chairman and minority chairman of the Appropriations Committee of the Senate, the chairman and the minority chairman of the Community, Economic and Recreational Development Committee of the Senate, the chairman and the minority chairman of the Appropriations Committee of the House of Representatives and the chairman and minority chairman of the Gaming Oversight Committee of the House of Representatives. (5) All counties and municipalities receiving distributions of local share assessments under this section shall submit an annual report to the Department of Community and Economic Development on a form prepared by the Department of Community and Economic Development that sets forth the amount and use of the funds received for the prior calendar year. The report shall set forth whether the funds received were deposited into the county's or municipality's general fund or committed to a specific project or use. The report shall be submitted by August 31, 2010, and by August 31 of each year thereafter. (f) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Community college." The term shall have the meaning ascribed to it in section 1901-A(4) of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949. "Local share assessment." Two percent of a certificate holder's daily gross table game revenue. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 amended subsec. (b)(1)(i), (3)(i) and (iii)(C) and (4) and added subsec. (a.1). Section 34(2) of Act 42 provided that the amendment of section 13A63(b)(3)(iii)(C) shall be retroactive to January 1, 2017. References in Text. The act of June 14, 1961, P.L.324, No.188, known as The Library Code, referred to in this section, was repealed by the act of November 1, 2012, P.L.1683, No.210. The information is now contained in 24 Pa.C.S. Ch. 93. Cross References. Section 13A63 is referred to in section 13A62 of this title.

4 Pa.C.S. § 13B02 Regulatory authority.

(a) Authority.--The board shall promulgate and adopt rules and regulations to govern the conduct of interactive gaming in order to ensure that it will be implemented in a manner that provides for the security and effective management, administration and control of interactive gaming, including, but not limited to, regulations: (1) Ensuring that interactive gaming is offered for play in this Commonwealth in a manner that is consistent with Federal law and the provisions of this chapter. (2) Establishing standards and procedures for testing and approving interactive games and interactive gaming devices and associated equipment, and any variations or composites of authorized interactive games, provided that the board determines that the interactive games and any new interactive games or any variations or composites are suitable for use after a test or experimental period under any terms and conditions as the board may deem appropriate. The board may give priority to the testing of interactive games, interactive gaming devices and associated equipment or other gaming equipment which a slot machine licensee or an applicant for an interactive gaming license has certified that it will use to conduct interactive gaming in this Commonwealth. Nothing in this paragraph shall be construed to prohibit the board from using the testing and certification standards of another state or jurisdiction in which interactive gaming is conducted, if it determines that the standards of the jurisdiction are comprehensive, thorough and provide similar and adequate safeguards as those required under this part. If the board makes such a determination and the slot machine licensee or applicant for an interactive gaming license is licensed in another state or jurisdiction to operate interactive gaming or an interactive gaming system, it may use an abbreviated process requiring only the information determined by it to be necessary to consider the issuance of an interactive gaming certificate or interactive gaming license under this chapter. The board, in its discretion, may also rely upon the certification of interactive games that have met the testing and certification standards of a board-approved private testing and certification facility. (3) Establishing standards and rules to govern the conduct of interactive gaming and the platform and system of and wagering associated with interactive gaming, including internal controls and accounting controls, and the type, number, payout, wagering limits and rules for interactive games. (4) Establishing the method for calculating gross interactive gaming revenue and standards for the daily counting and recording of cash and cash equivalents received in the conduct of authorized interactive games and ensure that internal controls and accounting controls are followed, including the maintenance of financial books and records and the conduct of audits. The board shall consult with the department in establishing these regulations. (5) Establishing notice requirements pertaining to minimum and maximum wagers on authorized interactive games. (6) Ensuring that all facilities and interactive gaming devices and associated equipment are arranged in a manner to promote appropriate security for interactive gaming. (7) Establishing technical standards for the approval of interactive games, interactive gaming devices and associated equipment, including mechanical, electrical or program reliability, security against tampering and any other standards as it may deem necessary to protect registered players from fraud or deception. (8) Governing the creation, ownership and utilization of interactive gaming accounts by registered players, including the following: (i) Requiring that an interactive gaming account be created, owned and utilized by a natural person and not in the name of any beneficiary, custodian, joint trust, corporation, partnership or other organization or entity. (ii) Prohibiting the assignment or other transfer of an interactive gaming account. (iii) Prohibiting the creation, ownership or utilization of an interactive gaming account by an individual under 21 years of age. (9) Establishing procedures for a registered player to log into the registered player's interactive gaming account, authenticate the registered player's identity, agree to terms, conditions and rules applicable to authorized interactive games and log out of the registered player's interactive gaming account, including procedures for automatically logging off a registered player from an interactive game after a specified period of inactivity. (10) Establishing procedures for: (i) Depositing funds in an interactive gaming account by cash, transfer or other means, as approved by the board. (ii) The withdrawal of funds from an interactive gaming account. (iii) The suspension of interactive gaming account activity for security reasons. (iv) The termination of an interactive gaming account and disposition of funds in the account. (v) The disposition of unclaimed funds in a dormant interactive gaming account. (11) Establishing mechanisms by which a registered player may place a limit on the amount of money being wagered on an authorized interactive game or during any specified time period or the amount of money lost during any specified time period. (12) Establishing mechanisms to exclude from interactive gaming persons not eligible to play by reason of age, identity or location or inclusion on a list of persons denied access to interactive gaming activities in accordance with sections 1514 (relating to regulation requiring exclusion, ejection or denial of access of certain persons), 1515 (relating to repeat offenders excludable from licensed gaming facility) and 1516 (relating to list of persons self excluded from gaming activities). (13) Establishing procedures for the protection, security and reliability of interactive gaming accounts, authorized interactive games, interactive gaming devices and associated equipment and mechanisms to prevent tampering or utilization by unauthorized persons. (14) Establishing data security standards to govern age, identity and location verification of persons engaged in interactive gaming activity. (15) Requiring each interactive gaming certificate holder to: (i) Provide written information on its interactive gaming skin or interactive gaming website, which explains the rules for each authorized interactive game, payoffs or winning wagers and other information as the board may require. (ii) Designate one or more interactive gaming restricted areas where interactive gaming will be managed, administered or controlled. (iii) Provide the board with access to the interactive gaming skin or interactive gaming website, interactive gaming platform, signal or transmission used in connection with interactive gaming and interactive gaming restricted areas. (iv) Adopt procedures for the recordation, replication and storage of all play and transactions for a period to be determined by the board. (v) Provide statements on its interactive gaming skin or interactive gaming website about the permissible minimum and maximum wagers for each authorized interactive game, as applicable. (vi) Adopt policies or procedures to prohibit any unauthorized person from having access to interactive gaming devices and associated equipment. (vii) Adopt data security standards to verify the age, identity and location of persons engaged in interactive gaming and prevent unauthorized access by any person whose age, identity and location have not been verified or whose age, identity and location cannot be verified in accordance with regulations adopted by the board. (viii) Adopt standards to protect the privacy and security of registered players engaged in interactive gaming. (ix) Collect, report and pay any and all applicable taxes and fees and maintain all books, records and documents related to the interactive gaming certificate holder's interactive gaming activities in a manner and in a location within this Commonwealth as approved by the board or the department. All books, records and documents shall be immediately available for inspection during all hours of operation in accordance with the regulations of the board and shall be maintained in a manner and during periods of time as the board shall by regulation require. (b) Additional authority.-- (1) At its discretion, the board may determine whether persons that provide the following goods or services shall be required to obtain a license, permit or other authorization: (i) Payment processing and related money transmitting and services. (ii) Identity, location or age verification and geospatial technology services. (iii) General telecommunications services, which are not specifically designed for or related to interactive gaming. (iv) Other goods or services that are not specifically designed for use with interactive gaming if the persons providing the goods or services are not paid a percentage of gaming revenue or of money wagered on interactive games or of any fees, not including fees to financial institutions and payment providers for facilitating a deposit by an interactive gaming account holder. (v) Any other goods or services related to interactive gaming as the board may determine. (2) The board shall develop a classification system for the licensure, permitting or other authorization of persons that provide the following goods or services related to interactive gaming: (i) Persons that provide interactive games and interactive gaming devices and associated equipment. (ii) Persons that manage, control or administer the interactive games or the wagers associated with interactive games. (iii) Persons that provide customer lists comprised of persons identified or selected, in whole or in part, because they placed or may place wagers on interactive gaming.

4 Pa.C.S. § 13B03 Regulations.

(a) Promulgation.-- (1) In order to facilitate the prompt implementation of this chapter, the board shall have the authority to promulgate temporary regulations which shall expire not later than two years following the publication of the temporary regulation in the Pennsylvania Bulletin and on the board's publicly accessible Internet website. (2) The board may promulgate temporary regulations not subject to: (i) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (ii) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (iii) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (b) Publications.--The board shall begin publishing temporary regulations governing the rules for interactive gaming, the issuance of interactive gaming certificates and interactive gaming licenses, standards for approving manufacturers, suppliers and other persons seeking to provide interactive games, interactive gaming devices and associated equipment, including age, identity and location verification software or system programs and security and surveillance standards in the Pennsylvania Bulletin within 45 days of the effective date of this subsection. (c) Expiration of temporary regulations.--Except for temporary regulations governing the rules for issuing certificates and licenses under this chapter, for new interactive games, for approving interactive games or variations thereof, interactive gaming devices and associated equipment and for approving manufacturers, suppliers and other persons seeking to provide interactive games, interactive gaming devices and associated equipment, the board's authority to adopt temporary regulations under subsection (a) shall expire two years after publication of the temporary regulations. Regulations adopted after this period shall be promulgated as provided by law. 2020 Partial Repeal. Section 18 of Act 114 provided that the provisions of section 13B03 are repealed insofar as they are inconsistent with the addition of section 1724.1-E(f) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code. Cross References. Section 13B03 is referred to in section 1207 of this title.

4 Pa.C.S. § 13B11 Authorization to conduct interactive gaming.

(a) Authority of board.--The board may authorize a slot machine licensee: (1) To conduct interactive gaming directly or through an interactive gaming operator under an interactive gaming agreement, including contests and tournaments and any other game which is determined by the board to be suitable for interactive gaming. (2) To deploy interactive gaming skins or interactive gaming websites to facilitate the conduct of interactive gaming activities. (a.1) Additional authority of board.--Pursuant to section 13B12(a.1) (relating to interactive gaming certificate required and content of petition), the board may authorize a qualified gaming entity to: (1) Conduct interactive gaming directly or through an interactive gaming operator under an interactive gaming agreement, including contests and tournaments and any other game which is determined by the board to be suitable for interactive gaming. (2) Deploy interactive gaming skins or interactive gaming websites to facilitate the conduct of interactive gaming activities. (a.2) Categorization.--The board, in the board's sole discretion, shall categorize each authorized interactive game as one of the following: (1) A peer-to-peer interactive game. (2) A non-peer-to-peer interactive game which simulates slot machines. (3) A non-peer-to-peer interactive game which simulates table games. (b) Authority to play interactive games.--Notwithstanding any other provision of law, an individual who is 21 years of age or older is hereby permitted to participate as a registered player in interactive gaming and wagering associated with playing an authorized interactive game offered by an interactive gaming certificate holder in accordance with this chapter and regulations of the board. Except as provided in Subchapter G (relating to miscellaneous provisions), a registered player must be physically located within this Commonwealth in order to participate in interactive gaming. Cross References. Section 13B11 is referred to in section 13B51 of this title.

4 Pa.C.S. § 13B12 Interactive gaming certificate required and content of petition.

(a) Certificate required.--No person shall operate or conduct or attempt to operate or conduct interactive gaming, except for test purposes as approved by the board, or offer interactive gaming for play by the public in this Commonwealth without first obtaining an interactive gaming certificate or an interactive gaming license from the board. A slot machine licensee may seek approval to conduct interactive gaming by filing a petition for an interactive gaming certificate with the board. The board shall prescribe the form and the manner in which it shall be filed. (a.1) Timing of petition and eligibility.--The following shall apply: (1) No later than 90 days after the date the board begins accepting petitions under this chapter, a slot machine licensee may file a petition with the board for an interactive gaming certificate. If the board approves a petition for an interactive gaming certificate under this paragraph, the board shall authorize the interactive gaming certificate holder to offer any category of interactive gaming. (2) Between 90 days and 120 days after the date the board begins accepting petitions under this chapter, a slot machine licensee may file a petition with the board for an interactive gaming certificate. If the board approves a petition for an interactive gaming certificate under this paragraph, the board shall authorize the interactive gaming certificate holder to offer the categories of interactive gaming identified in the slot machine licensee's petition under subsection (b)(4.1). (3) One hundred twenty days after the date the board begins accepting petitions under this chapter, a qualified gaming entity may file a petition with the board for an interactive gaming certificate. If the board approves a petition for an interactive gaming certificate under this paragraph, the board shall authorize the interactive gaming certificate holder to offer the categories of interactive gaming identified in the slot machine licensee's petition under subsection (b)(4.1). (4) A qualified gaming entity which files a petition for an interactive gaming certificate under paragraph (3) shall be considered a slot machine licensee for the purposes of this subchapter. (5) Any slot machine licensee who becomes licensed after the effective date of this section shall have 90 days from the date of licensure to submit a petition with the board for an interactive gaming certificate. If the board approves a petition for an interactive gaming certificate under this paragraph, the board shall authorize the interactive gaming certificate holder to offer any category of interactive gaming. After 90 days but before 120 days from the date of licensure, the slot machine licensee may file a petition with the board for an interactive gaming certificate. If the board approves a petition for an interactive gaming certificate under this paragraph, the board shall authorize the interactive gaming certificate holder to offer the categories of interactive gaming identified in the slot machine licensee's petition under subsection (b)(4.1). After 120 days from the date of licensure, a qualified gaming entity may file a petition with the board for an interactive gaming certificate in the categories of interactive games for which the slot machine licensee did not seek authorization. (6) For the purposes of this subsection, a "qualified gaming entity" shall be a gaming entity licensed in any jurisdiction which has satisfied the requirements of this chapter and any other criteria established by the board, including financial and character suitability requirements. (a.2) Number of interactive gaming certificates authorized.-- (1) The board may issue a maximum number of interactive gaming certificates as provided under this subsection: (i) An amount not to exceed one certificate for peer-to-peer interactive games per Category 1, Category 2 or Category 3 slot machine license. (ii) An amount not to exceed one certificate for non-peer-to-peer interactive games which simulate table games per Category 1, Category 2 or Category 3 slot machine license. (iii) An amount not to exceed one certificate for non-peer-to-peer interactive games which simulate slot machines per Category 1, Category 2 or Category 3 slot machine license. (2) An interactive gaming certificate which authorizes multiple categories of interactive games shall count as an interactive gaming certificate in each category of interactive game authorized under this section. (b) Content of petition.--In addition to information and documentation demonstrating that the slot machine licensee is qualified for an interactive gaming certificate under this chapter, a petition for an interactive gaming certificate shall include the following: (1) The name, business address and contact information of the slot machine licensee. (2) The name, business address and contact information of any affiliate or other person that will be a party to an agreement with the slot machine licensee related to the operation of interactive gaming or an interactive gaming system on behalf of the slot machine licensee, including a person applying for an interactive gaming license. (3) The name and business address, job title and a photograph of each principal and key employee of the slot machine licensee who will be involved in the conduct of interactive gaming, whether or not the principal or key employee is currently licensed by the board, if known. (4) The name and business address, job title and a photograph of each principal and key employee of the interactive gaming operator, if any, who will conduct interactive gaming or an interactive gaming system on behalf of the slot machine licensee, whether or not the principal or key employee is currently licensed by the board, if known. (4.1) A statement identifying which categories of interactive games the slot machine licensee intends to offer: (i) peer-to-peer interactive games; (ii) non-peer-to-peer interactive games which simulate slot machines; or (iii) non-peer-to-peer interactive games which simulate table games. (5) An itemized list of the interactive games, including identifying what category each interactive game falls under, and any other game or games the slot machine licensee plans to offer through the slot machine licensee's interactive gaming website for which authorization is being sought. The slot machine licensee shall, in accordance with regulations promulgated by the board, file with the board any changes in the number of authorized interactive games offered through interactive gaming. (6) The estimated number of full-time and part-time employment positions that will be created at the slot machine licensee's licensed facility or at any interactive gaming restricted area if an interactive gaming certificate is issued and an updated hiring plan under section 1510(a) (relating to labor hiring preferences) which outlines the slot machine licensee's plan to promote the representation of diverse groups and Commonwealth residents in the employment positions. (7) A brief description of the economic benefits expected to be realized by the Commonwealth if an interactive gaming certificate is issued. (8) The details of any financing obtained or that will be obtained to fund an expansion or modification of the slot machine licensee's licensed facility to accommodate interactive gaming and to otherwise fund the cost of commencing interactive gaming. (9) Information and documentation concerning financial background and resources, as the board may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the slot machine licensee, and information or documentation concerning any person that will operate interactive gaming or an interactive gaming system on behalf of the slot machine licensee as an interactive gaming operator, as the board may require. The interactive gaming agreement with such person shall be subject to the review and approval of the board. (10) Information and documentation, as the board may require, to establish by clear and convincing evidence that the slot machine licensee has sufficient business ability and experience to conduct a successful interactive gaming operation. In making this determination, the board may consider the results of the slot machine licensee's slot machine and table game operations, including financial information, employment data and capital investment. (11) Information and documentation, as the board may require, to establish by clear and convincing evidence that the slot machine licensee has or will have the financial ability to pay the interactive gaming authorization fee. (12) Detailed site plans identifying the proposed interactive gaming restricted area where interactive gaming operations will be managed, administered or controlled as approved by the board. (13) A detailed description of all of the following: (i) The slot machine licensee's initial system of internal and accounting controls applicable to interactive gaming. (ii) The slot machine licensee's proposed standards to protect, with a reasonable degree of certainty, the privacy and security of its registered players. (iii) How the slot machine licensee will facilitate compliance with all of the requirements set forth in this chapter and in section 802(a) of the Unlawful Internet Gambling Enforcement Act of 2006 (Public Law 109-347, 31 U.S.C. § 5362(10)(B)), including, but not limited to, all of the following: (A) Age, identity and location verification requirements. (B) Appropriate data security standards to prevent unauthorized access by any person whose age, identity or location have not been verified or cannot be verified in accordance with this chapter and applicable regulations of the board. (C) Except as provided in Subchapter G (relating to miscellaneous provisions), the requirement that all wagers made in the conduct of interactive gaming be initiated and received or otherwise made exclusively within this Commonwealth. (iv) The slot machine licensee's proposed age, identity and location verification standards designed to block access to persons under 21 years of age and other persons excluded or prohibited from participating in interactive gaming under this chapter. (v) The procedures the slot machine licensee will use to register individuals as registered players. (vi) The procedures the slot machine licensee will use to establish interactive gaming accounts for registered players. (vii) The interactive games and services the slot machine licensee proposes to offer to registered players. (viii) Documentation and information relating to known proposed contractors of the slot machine licensee and subcontractors of the contractors. (14) The interactive gaming devices and associated equipment and interactive gaming system or systems that the slot machine licensee plans to or will utilize to manage, administer or control its interactive gaming operations. (15) Compliance certification of the slot machine licensee's proposed interactive gaming devices and associated equipment, including interactive gaming software and hardware, by a board-approved gaming laboratory to ensure that the gaming software and hardware comply with the requirements of this chapter and regulations of the board. (16) Detailed description of accounting systems, including, but not limited to, accounting systems for all of the following: (i) Interactive gaming accounts. (ii) Per-hand charges, if applicable. (iii) Transparency and reporting to the board and the department. (iv) Distribution of revenue to the Commonwealth and winnings to registered players. (v) Ongoing auditing and internal control compliance reviews. (17) Detailed information on security systems to protect the interactive gaming skins or interactive gaming website from internal and external breaches and threats. (18) Any other information the board may require. (c) Confidentiality.--Information submitted to the board under subsection (b) may be considered confidential by the board if the information would be confidential under section 1206(f) (relating to board minutes and records). Cross References. Section 13B12 is referred to in sections 1206, 13B11, 13B13, 13B51 of this title.

4 Pa.C.S. § 13B13 Issuance of interactive gaming certificate.

(a) Requirements for approval of petition.-- (1) The board may approve a petition under section 13B12 (relating to interactive gaming certificate required and content of petition) upon finding clear and convincing evidence of all of the following: (i) The slot machine licensee's proposed conduct of interactive gaming complies in all respects with the requirements of this chapter and regulations promulgated by the board. (ii) Age, identity and location verification requirements designed to block access to individuals under 21 years of age and persons otherwise excluded or prohibited from engaging in interactive gaming in accordance with this chapter, as approved by the board, have been implemented by the slot machine licensee. (iii) The slot machine licensee has implemented or will implement appropriate data security standards to prevent unauthorized access by any person whose age, identity and location has not been verified or cannot be verified in accordance with the regulations promulgated by the board. (iv) The slot machine licensee has implemented or will implement appropriate standards to protect the privacy and security of registered players with a reasonable degree of certainty. (v) The slot machine licensee's initial system of internal and accounting controls applicable to interactive gaming, and the security and integrity of all financial transactions in connection with the system, complies with this chapter and regulations promulgated by the board. (vi) The slot machine licensee is in good standing with the board. (vii) The slot machine licensee agrees that the number of slot machines and table games in operation at its licensed facility, as of the effective date of this section, will not be reduced as a result of interactive gaming. (2) It shall be an express condition of the issuance and continued validity of an interactive gaming certificate that a slot machine licensee shall collect, report and pay all applicable taxes and fees and shall maintain all books, records and documents pertaining to the slot machine licensee's interactive gaming operations in a manner and location within this Commonwealth as approved by the board. All books, records and documents shall be immediately available for inspection by the board and the department during all hours of operation in accordance with the regulations of the board and shall be maintained in a manner and during periods of time as the board shall require. (b) Issuance of interactive gaming certificate.-- (1) Upon approval of a petition for an interactive gaming certificate, the board shall issue an interactive gaming certificate to the slot machine licensee. The issuance of an interactive gaming certificate prior to the full payment of the authorization fee required under section 13B51 (relating to interactive gaming authorization fee) shall not relieve the slot machine licensee from the obligation to pay the authorization fee in accordance with the requirements of section 13B51. (2) Upon issuing an interactive gaming certificate, the board shall amend the slot machine licensee's statement of conditions to include conditions pertaining to the requirements of this chapter. (c) Term of interactive gaming certificate.--Subject to the power of the board to deny, revoke or suspend an interactive gaming certificate, an interactive gaming certificate shall be valid for five years from the date of issuance and may be renewed in accordance with the requirements of section 1326 (relating to renewals). (d) Sanctions.--An interactive gaming certificate holder that fails to abide by the requirements of this chapter or regulations of the board or any condition contained in the interactive gaming certificate holder's statement of conditions governing the operation of interactive gaming shall be subject to board-imposed administrative sanctions or other penalties authorized under this part. (e) Background investigations.--Each petition for an interactive gaming certificate shall be accompanied by a nonrefundable fee established by the board to cover the cost of background investigations. The board shall determine by regulation the persons who shall be subject to background investigation. Any additional costs and expenses incurred in any background investigation or other investigation or proceeding under this chapter shall be reimbursed to the board by the petitioner. Cross References. Section 13B13 is referred to in section 13B14 of this title.

4 Pa.C.S. § 13B14 Interactive gaming operators.

(a) License required.--No person shall serve or attempt to serve as an interactive gaming operator without first obtaining an interactive gaming license from the board. A person may seek approval to serve as an interactive gaming operator by filing an application with the board. The board shall prescribe the form of the application and the manner in which it shall be filed. The board shall: (1) Determine suitability of the person filing an application under this section. The board shall determine suitability in accordance with the same requirements of this part applicable to the determination of suitability of the issuance of an interactive gaming certificate to a slot machine licensee. Notwithstanding the provisions of this paragraph, the board may consider a holder of a valid license, permit, registration, certificate or other authorization approved and issued under this part, which is in good standing, as suitable under this section without additional investigation. The consideration shall not relieve the applicant for an interactive gaming license from payment of all fees imposed under this chapter. (2) Provide for the approval of the terms and conditions of all agreements entered into by or between an interactive gaming certificate holder and a person applying for an interactive gaming license. (b) Classification and approval of employees.-- (1) The board shall establish a classification system for employees of interactive gaming operators or other persons who provide products or services associated with or related to interactive gaming, interactive gaming platforms and interactive gaming systems. (2) The board shall provide for the licensure, permitting, registration or certification, as it deems appropriate, of employees in each employee classification established by it in accordance with paragraph (1). (c) Applicability of certain provisions.--Interactive gaming operators shall be subject to the applicable provisions of this part that apply to interactive gaming certificate holders, as determined by the board, including the provisions of section 13B13(d) (relating to issuance of interactive gaming certificate). (d) Term of interactive gaming license.--Subject to the power of the board to deny, revoke or suspend an interactive gaming license, an interactive gaming license shall be valid for five years from the date of issuance and may be renewed in accordance with the requirements of section 1326 (relating to renewals). (e) Interactive gaming license and conditional authorization.-- (1) The following shall apply: (i) During the first 18 months after the effective date of this section, the board may issue conditional authorization to a person applying for an interactive gaming license. (ii) Conditional authorization issued under this subsection shall remain in effect until the earlier of the date occurring 12 months after the issuance of the authorization or the date upon which the board makes a final determination on the person's application. (iii) The effectiveness of a conditional authorization may be extended by the board not more than once, upon a showing of good cause. (iv) Conditional authorization shall allow an applicant for an interactive gaming license to engage in all of the functions of a licensed interactive gaming operator for the duration of the conditional authorization. (2) A conditional authorization may not be issued unless: (i) The applicant has submitted a complete application for an interactive gaming license to the board. (ii) The applicant agrees to pay or has paid the fee prescribed in section 13B51 (relating to interactive gaming authorization fee) prior to the issuance of conditional authorization. (iii) The bureau has no objection to the issuance of a conditional authorization to the applicant. (3) Within 45 days of the date that the bureau receives the completed application for an interactive gaming license from an applicant for investigation, the bureau shall conduct a preliminary investigation of the applicant and any employee of the applicant determined by the board to be included in the investigation, which shall include a criminal background investigation. (4) If the bureau's preliminary investigation discloses no adverse information that would impact suitability for licensure, the bureau shall provide the board with a statement of no objection to the issuance of conditional authorization to the applicant. (5) If the bureau's preliminary investigation discloses adverse information that would impact suitability for licensure, it shall register an objection, and a conditional authorization may not be issued until the bureau's concerns are resolved. (6) A conditional authorization approved and issued to an applicant for an interactive gaming license under this subsection may be suspended or withdrawn by the board upon a showing of good cause by the bureau. Cross References. Section 13B14 is referred to in sections 1103, 1206 of this title.

4 Pa.C.S. § 13B15 Interactive gaming certificate and interactive gaming license.

The following shall apply: (1) An interactive gaming certificate and an interactive gaming license issued to an interactive gaming operator conducting interactive gaming or an interactive gaming system on behalf of the interactive gaming certificate holder shall be valid unless not renewed in accordance with the provisions of this chapter or: (i) The certificate or license is suspended or revoked by the board as permitted by this part and regulations of the board. (ii) The interactive gaming certificate holder's slot machine license is suspended, revoked or not renewed by the board as permitted by this part and regulations of the board. (iii) The interactive gaming certificate holder slot machine licensee relinquishes or does not seek renewal of its slot machine license. (iv) The interactive gaming certificate holder does not seek renewal of its interactive gaming certificate. (2) The interactive gaming certificate may include an initial itemized list by number and type of authorized interactive games to be conducted by the interactive gaming certificate holder or interactive gaming operator. The interactive gaming certificate holder may increase or decrease the number of interactive games authorized for play on its interactive gaming skin or interactive gaming website or change the type of authorized interactive games played on its interactive gaming skin or interactive gaming website consistent with the types of interactive games authorized by the interactive gaming certificate issued by the board, upon notice, if required by the board, to the board and approval by the board or a designated employee of the board. Unless approved by the board or a designated employee of the board, the total number and type of authorized interactive games offered for play by an interactive gaming certificate holder may not differ from the number and type approved by the board and authorized in the interactive gaming certificate. (3) A slot machine licensee shall be required to update the information in its petition for an interactive gaming certificate at times and in the form and manner prescribed by the board. (4) A valid interactive gaming certificate or interactive gaming license may be renewed in accordance with the procedures set forth in section 1326 (relating to renewals) and upon the payment of the applicable renewal fee required by section 13B51(c) (relating to interactive gaming authorization fee).

4 Pa.C.S. § 13B16 Timing of initial interactive gaming authorizations.

The board shall prescribe the date on which initial petitions for an interactive gaming certificate and applications for an interactive gaming license must be filed with the board and shall approve or deny a petition or application within 90 days following receipt.

4 Pa.C.S. § 13B20 Authorization.

(a) Authority.--The board may authorize an interactive gaming certificate holder to provide for the conduct of interactive gaming, either directly or through an interactive gaming operator under an interactive gaming agreement, at a qualified airport through the use of multi-use computing devices by eligible passengers in accordance with this subchapter and the regulations of the board. The following shall apply: (1) If the interactive gaming certificate holder intends to operate interactive gaming under an interactive gaming agreement, the interactive gaming operator that is a party to the interactive gaming agreement shall have been issued an interactive gaming license or will be issued an interactive gaming license prior to the commencement of operations under the interactive gaming agreement. The interactive gaming agreement shall be subject to the review and approval of the board. (2) As follows: (i) The interactive gaming certificate holder or the interactive gaming operator, as appropriate, shall enter into a written agreement for the conduct of interactive gaming through the use of multi-use computing devices within the airport gaming area as follows: (A) For the conduct of interactive gaming at a qualified airport which is located partially in a county of the first class and partially in a county contiguous to a county of the first class, the written agreement shall be with either the airport authority or its designee or a concession operator, except that, if the written agreement is with a concession operator, the airport authority or its designee must have approved or consented to lawful gaming within the airport gaming area through the concession operator's concession contract, and the airport authority must have received a copy of the written agreement with the certificate holder or the interactive gaming operator. (B) For the conduct of interactive gaming at a qualified airport which is not located partially within a county of the first class and partially in a county contiguous to a county of the first class, the written agreement shall be with the airport authority or its designee. (ii) The written agreement shall be subject to the review and approval of the board. (3) Notwithstanding any provision to the contrary contained in this part or regulation of the board, an eligible passenger does not need to be a registered player as provided for in section 13B22 (relating to establishment of interactive gaming accounts). (b) Petition.--An interactive gaming certificate holder desiring to provide interactive gaming at a qualified airport under subsection (a) shall submit a petition for approval to the board. The petition shall be in the form and submitted in the manner prescribed by the board. (c) Requirements.--The petition filed under subsection (b) shall include the following: (1) The name, business address and contact information of the interactive gaming certificate holder and the name, business address and contact information of the interactive gaming operator, if applicable. (2) The name and business address, job title and a photograph of each principal and key employee, if known, of the interactive gaming certificate holder and the interactive gaming operator, if applicable, who will be directly involved in the conduct of the authorized interactive games at the qualified airport and who are not currently licensed by the board. (3) The name and job title of the person or persons who will be responsible for ensuring the operation and integrity of the conduct of interactive gaming at the qualified airport and for reviewing reports of suspicious transactions. (4) A copy of the interactive gaming agreement, if applicable. (5) The location of the qualified airport together with detailed site plans indicating the location of the proposed airport gaming area. (6) Except as provided in paragraph (7), the name and business address of the airport authority governing the qualified airport and the names of the members of the governing body of the airport authority. (7) If the use and control of the qualified airport is regulated by a city of the first class, an identification of the municipal agency with primary oversight in the city of the first class. (8) Copies of the agreements required under subsection (a)(2). (9) The brand name of the multi-use computing devices that will be placed in operation at the qualified airport and any information required by the board, in its discretion, regarding persons that manufacture or will supply the multi-use computing devices as it deems necessary. (10) The interactive games the interactive gaming certificate holder or the interactive gaming operator, as applicable, intends to offer for play at the qualified airport. (11) Information, as the board may require, on any computer applications, including gaming applications, that can be accessed on the multi-use computing devices to be placed into operation at the qualified airport. (12) Information and documentation evidencing the financial stability, integrity and responsibility of the interactive gaming certificate holder and the interactive gaming operator, if applicable. (13) The agreement of the interactive gaming certificate holder to pay the fee required by section 13B20.3 (relating to fee). (14) Any other information required by the board. (d) Confidentiality.--Information submitted to the board under subsection (c) may be considered confidential by the board if the information would be confidential under section 1206(f) (relating to board minutes and records). (e) Approval.--The board shall approve the petition submitted under subsection (b) upon review and approval of the information submitted under subsection (c) and a determination by the board by clear and convincing evidence that: (1) The interactive gaming certificate holder and the interactive gaming operator, if applicable, have paid all required fees and taxes payable under provisions of this part other than this subchapter to the date of submission of the petition. (2) The interactive gaming certificate holder, or the interactive gaming operator, as the case may be, possesses the necessary funds or has secured adequate financing to commence the conduct of interactive gaming at the qualified airport. (3) The proposed internal and external security and surveillance measures at the qualified airport and within the airport gaming area are adequate. (4) Interactive gaming at the qualified airport will be conducted and operated in accordance with this part and regulations of the board.

4 Pa.C.S. § 13B20.3 Fee.

(a) Required fee.-- (1) An interactive gaming certificate holder shall pay a one-time, nonrefundable fee upon the authorization to conduct interactive gaming at a qualified airport through the use of multi-use computing devices in accordance with this subchapter. (2) The amount of the fee shall be as follows: (i) If the airport is an international airport located partially in a county of the first class and partially in a county contiguous to a county of the first class, the amount of the fee shall be $2,500,000. (ii) If the airport is an international airport located in a county of the second class, the amount of the fee shall be $1,250,000. (iii) If the airport is an international airport located in a county other than a county of the first or second class, the amount of the fee shall be $500,000. (iv) If the airport is a qualified airport that has not been designated an international airport, the amount of the fee shall be $125,000. (b) Deposit of fees.--Notwithstanding section 1208 (relating to collection of fees and fines), all fees received by the board under this subchapter shall be deposited in the General Fund. Cross References. Section 13B20.3 is referred to in section 13B20 of this title.

4 Pa.C.S. § 13B20.4 Multi-use gaming device tax.

(a) Imposition.-- (1) Each interactive gaming certificate holder authorized to conduct interactive gaming at a qualified airport in accordance with the provisions of this subchapter shall report to the department and pay from its daily gross interactive airport gaming revenue generated from the conduct of interactive gaming through multi-use computing devices at the qualified airport, on a form and in the manner prescribed by the department, a tax equal to the tax imposed under section 13B52(a) (relating to interactive gaming tax) of its daily gross interactive airport gaming revenue generated from multi-use computing devices at the qualified airport. (2) The tax imposed under paragraph (1) shall be payable to the department on a weekly basis and shall be based upon the gross interactive airport gaming revenue generated from multi-use computing devices at the qualified airport derived during the previous week. (3) All funds owed to the Commonwealth under this section shall be held in trust for the Commonwealth by the interactive gaming certificate holder until the funds are paid to the department. An interactive gaming certificate holder shall establish a separate bank account into which gross interactive airport gaming revenue from multi-use computing devices at a qualified airport shall be deposited and maintained until such time as the funds are paid to the department under this section. (4) The department shall transfer the funds collected under this section to the General Fund. (b) Credit against tax imposed.--A credit against the tax imposed under subsection (a) shall be granted in an amount determined by the department with respect to an amount which is: (1) paid by a concession operator or airport authority on the daily gross interactive gaming revenue generated from the conduct of interactive gaming through multi-use computing devices at the qualified airport; and (2) required to remain at the qualified airport pursuant to Federal requirements relating to Federal Aviation Administration funds. Cross References. Section 13B20.4 is referred to in section 13B20.5 of this title.

4 Pa.C.S. § 13B20.5 Multi-use gaming device local share assessment.

(a) Required payment.--In addition to the tax imposed under section 13B20.4 (relating to multi-use gaming device tax), each interactive gaming certificate holder authorized to conduct interactive gaming at a qualified airport shall report to the department and pay, on a form and in a manner prescribed by the department, a local share assessment equal to the local share assessment imposed under section 13B53 (relating to local share assessment) of the interactive gaming certificate holder's daily gross interactive airport gaming revenue from multi-use devices at the qualified airport. The funds shall be payable to the department on a weekly basis and shall be based upon the revenue generated during the previous week. The funds shall be paid into a restricted receipts account established by the department in the fund. All funds owed to the Commonwealth under this section shall be held in trust by the interactive gaming certificate holder until the funds are paid to the department. Funds in the account are hereby appropriated to the department on a continuing basis for the purposes set forth in this section. (b) Distribution.--The department shall make quarterly distributions from the local share assessments imposed under subsection (a) as follows: (1) Except as provided under paragraph (2), 50% shall be deposited into a restricted receipts account to be established in the Commonwealth Financing Authority to be used exclusively for grants in the public interest in a county hosting the qualified airport. If a qualified airport is located in more than one county, the grants shall be distributed equally to each county hosting the qualified airport. (2) For an international airport located partially in a county of the first class and partially in a county contiguous to a county of the first class, 50% shall be distributed as follows: (i) Fifty percent to a school district of the first class. (ii) Fifty percent shall be deposited into a restricted receipt account to be established in the Commonwealth Financing Authority to be used exclusively for grants in the public interest in a county contiguous to a county of the first class and in which an international airport is partially located. (3) Fifty percent shall be added to and distributed with the funds distributed under section 13B53(b)(2).

4 Pa.C.S. § 13B20.6 Regulations.

The board shall promulgate regulations related to the operation of authorized interactive games through the use of multi-use computing devices at qualified airports, including, but not limited to: (1) Procedures for the creation of temporary or provisional interactive gaming accounts that take into consideration the nature of interactive gaming through multi-use computing devices at qualified airports. (2) Procedures to govern credits, debits, deposits and payments to interactive gaming accounts. (3) In consultation with the department, procedures to govern financial transactions between an interactive gaming certificate holder, an interactive gaming operator or other persons that relates to the reporting of gross interactive airport gaming revenue generated through the use of multi-use computing devices at qualified airports.

4 Pa.C.S. § 13B20.7 Construction.

Nothing in this subchapter shall be construed to: (1) Create a separate license governing the use of multi-use computing devices for the conduct of interactive games at qualified airports by interactive gaming certificate holders within this Commonwealth. (2) Limit the board's authority to determine the suitability of any person who may be directly or indirectly involved in or associated with the operation of interactive gaming at a qualified airport or to ensure the integrity of interactive gaming and protect the public interest.

4 Pa.C.S. § 13B21 Situs of interactive gaming operations.

Except as provided in Subchapter G (relating to miscellaneous provisions), all wagers made through interactive gaming shall be deemed to be initiated, received or otherwise made within the geographic boundaries of this Commonwealth. The intermediate routing of electronic data associated or in connection with interactive gaming shall not determine the location or locations in which a bet or wager is initiated, received or otherwise made.

4 Pa.C.S. § 13B22 Establishment of interactive gaming accounts.

(a) Registration restrictions.--Only a registered player who has first established an interactive gaming account shall be permitted to play an authorized interactive game or place a wager associated with an authorized interactive game. The interactive gaming account shall be in the name of a registered player and may not be in the name of any beneficiary, custodian, joint trust, corporation, partnership or other organization or entity. An eligible passenger is not required to comply with this section in order to play or place a wager associated with an interactive game through the use of a multi-use computing device at a qualified airport. (b) Establishment of interactive gaming accounts.-- (1) An interactive gaming account may be established in person, provided that the board shall, through regulations, provide procedures for the establishment of interactive gaming accounts over the Internet through the interactive gaming certificate holder's interactive gaming skin or interactive gaming website. Each interactive gaming account shall comply with the internal controls of the interactive gaming certificate holder that, at a minimum, require the following: (i) The filing and execution of an interactive gaming account application, the form of which has been preapproved by the board. (ii) Proof of age, identity and physical address of the principal residence of the prospective interactive gaming account holder in a method approved by the board through regulation. (iii) Electronic mail address and other contact information of the prospective account holder, as the board or interactive gaming certificate holder may require. (iv) Password or other secured identification provided by the interactive gaming certificate holder to access the interactive gaming account or some other mechanism approved by the board to authenticate the registered player as the holder to the interactive gaming account. (v) An acknowledgment under penalty of perjury that false or misleading statements made in regard to an application for an interactive gaming account may subject the applicant to civil and criminal penalties. (2) The interactive gaming certificate holder may accept or reject an application after receipt and review of the application and verification of age, identity and physical address for compliance with the provisions of this chapter. The interactive gaming certificate holder shall have the right, at any time with or without cause, to suspend or close any interactive gaming account at its sole discretion. (3) The address provided by the applicant in the application for an interactive gaming account shall be deemed the address of record for the purposes of mailing checks, account withdrawals, notices and other materials to the prospective interactive gaming account holder. (4) An interactive gaming account shall be a noninterest bearing account and shall not be assignable or otherwise transferable. (c) Password required.--As part of the application process, the interactive gaming certificate holder shall provide the prospective interactive gaming account holder with a password to access the interactive gaming account or shall establish some other method approved by the board to authenticate the registered player as the holder of the interactive gaming account and allow the registered player access to the interactive gaming account. (d) Grounds for rejection.--Any individual who provides false or misleading information in the application for an interactive gaming account may be subject to rejection of the application or cancellation of the account by the interactive gaming certificate holder. (e) Suspension of interactive gaming account.--The interactive gaming certificate holder shall have the right to suspend or close any interactive gaming account or declare all or any part of an interactive gaming account closed for wagering at its discretion. (f) Persons prohibited from establishing or maintaining an interactive gaming account.--The following persons shall not be entitled to establish or maintain an interactive gaming account: (1) A person under 21 years of age. (2) A person on the list of persons who are or will be excluded or ejected from or denied access to any licensed facility under section 1514 (relating to regulation requiring exclusion, ejection or denial of access of certain persons), 1515 (relating to repeat offenders excludable from licensed gaming facility) or 1516 (relating to list of persons self excluded from gaming activities). (3) A gaming employee, key employee or principal employee of a slot machine licensee and any employee or key employee of an interactive gaming operator. Cross References. Section 13B22 is referred to in sections 13B20, 13B32 of this title.

4 Pa.C.S. § 13B23 Interactive gaming account credits, debits, deposits and payments.

(a) Duty of board.--The board shall, by regulation, develop procedures to govern credits, debits and deposits to interactive gaming accounts. Notwithstanding any provision of this part to the contrary, all credits, debits and deposits to interactive gaming accounts shall be made in accordance with regulations promulgated by the board, in consultation with the department, and all payments of winnings shall be made in accordance with the rules of each authorized interactive game. (b) Rights of interactive gaming certificate holder.--An interactive gaming certificate holder shall have the right to: (1) Credit an interactive gaming account as part of a promotion. (2) Refuse all or part of any wager or deposit to the interactive gaming account of a registered player.

4 Pa.C.S. § 13B24 Acceptance of wagers.

(a) Acceptance.--An interactive gaming certificate holder may accept wagers only as follows: (1) The wager shall be placed directly with the interactive gaming certificate holder by the registered player, after the interactive gaming certificate holder has verified the identity of the individual seeking to place the wager. (2) The registered player provides the interactive gaming certificate holder with the correct password or other authentication information for access to the interactive gaming account. (b) Nonacceptance.--An interactive gaming certificate holder may not accept a wager in an amount in excess of funds on deposit in the interactive gaming account of the registered player placing the wager. Funds on deposit include amounts credited to a registered player's interactive gaming account in accordance with regulations of the board and any funds in the account at the time the wager is placed.

4 Pa.C.S. § 13B25 Dormant interactive gaming accounts.

Before closing a dormant interactive gaming account, the interactive gaming certificate holder shall attempt to contact the interactive gaming account holder by mail, phone and e-mail to inform the account holder that the interactive gaming account is inactive and may be subject to termination. The time and manner of terminating a dormant interactive gaming account shall be prescribed by regulation of the board.

4 Pa.C.S. § 13B26 Log-in procedure required.

Each interactive gaming certificate holder shall establish a log-in procedure for a registered player to access interactive gaming. The log-in procedure shall include the provision of the appropriate authentication information by the registered player for access to the registered player's interactive gaming account. The interactive gaming certificate holder shall not allow a registered player to log in and access an interactive gaming account unless the correct password or other authentication information is provided.

4 Pa.C.S. § 13B27 Information provided at login.

The interactive gaming certificate holder shall configure its interactive gaming skin or interactive gaming website to include a link that, upon login, will allow a registered player to access all of the following information: (1) The current amount of funds in the registered player's interactive gaming account. (2) The wins and losses since the registered player's interactive gaming account was established. (3) The wins and losses at the beginning of the current gaming session and the wins and losses at the end of the current gaming session. (4) The complete text in searchable format of the rules of each authorized interactive game offered by the interactive gaming certificate holder and any other information as the board may require.

4 Pa.C.S. § 13B28 Prohibitions.

Except as provided in this part, no interactive gaming certificate holder or any person licensed under this part to operate interactive gaming or an interactive gaming system and no person acting on behalf of, or under any arrangement with, an interactive gaming certificate holder or other person licensed under this part shall: (1) Make any loan to any person for the purpose of crediting an interactive gaming account. (2) Release or discharge any debt, either in whole or in part, or make any loan which represents any losses incurred by any registered player while playing an authorized interactive game without maintaining a written record thereof in accordance with regulations of the board.

4 Pa.C.S. § 13B29 Commencement of interactive gaming operations.

An interactive gaming certificate holder may not operate or offer interactive games for play on its interactive gaming skin or interactive gaming website until the board determines that: (1) The interactive gaming certificate holder is in compliance with the requirements of this chapter. (2) The interactive gaming certificate holder's internal, administrative and accounting controls are sufficient to meet the requirements of section 13B32 (relating to internal, administrative and accounting controls) and have been implemented. (3) The interactive gaming certificate holder's interactive gaming employees, where applicable, are licensed, permitted, registered, certified or otherwise authorized by the board to perform their respective duties. (4) The employees of the interactive gaming operator, if any, that is conducting interactive gaming on behalf of the interactive gaming certificate holder are, where applicable, licensed, permitted or otherwise authorized by the board to perform their duties. (5) The interactive gaming certificate holder is prepared in all respects to offer interactive gaming to the public over its interactive gaming skin or interactive gaming website. (6) The interactive gaming certificate holder has implemented necessary security arrangements and surveillance systems for the operation of interactive gaming. (7) The interactive gaming certificate holder is in compliance with or will comply with section 13B31 (relating to responsibilities of interactive gaming certificate holder). (8) The board has approved the interactive gaming agreement between the interactive gaming certificate holder and the interactive gaming operator, if applicable.

4 Pa.C.S. § 13B31 Responsibilities of interactive gaming certificate holder.

(a) Facilities and equipment.--All facilities and interactive gaming devices and associated equipment shall: (1) Be arranged in a manner promoting appropriate security for interactive gaming. (2) Include a closed-circuit video monitoring system according to rules or specifications approved by the board, with board absolute access to the interactive gaming certificate holder's interactive gaming skin, interactive gaming website and interactive gaming platform, signal or transmission used in connection with interactive gaming. (3) Not be designed in any way that might interfere with or impede the board in its regulation of interactive gaming. (4) Comply in all respects with regulations of the board. (b) Location of equipment and interactive gaming restricted areas.-- (1) All interactive gaming devices and associated equipment used by an interactive gaming certificate holder or an interactive gaming licensee to conduct interactive gaming may be located, with the prior approval of the board, in an interactive gaming restricted area on the premises of the licensed facility, in an interactive gaming restricted area within the geographic limits of the county in this Commonwealth where the licensed facility is situated or in any other area approved by the board. (2) All wagers associated with interactive gaming shall be deemed to be placed, initiated and received when received by the interactive gaming certificate holder. Cross References. Section 13B31 is referred to in section 13B29 of this title.

4 Pa.C.S. § 13B32 Internal, administrative and accounting controls.

(a) Submissions to board.--Notwithstanding any provision of this part, each slot machine licensee who holds or has applied for an interactive gaming certificate in accordance with this chapter shall submit a description of its system of internal procedures and administrative and accounting controls for interactive gaming to the board, including provisions that provide for real-time monitoring, recordation or storage of all interactive games and a description of any changes to its procedures and controls. The submission shall be made at least 90 days before interactive gaming is to commence or at least 90 days before any change in those procedures or controls is to take effect, unless otherwise directed by the board. (b) Filing.--Notwithstanding subsection (a), the procedures and controls may be implemented by an interactive gaming certificate holder upon the filing of the procedures and controls with the board. Each procedure or control submission shall contain both narrative and diagrammatic representations of the system to be utilized and shall include but need not be limited to: (1) Accounting controls, including the standardization of forms and definition of terms to be utilized in the interactive gaming operations. (2) Procedures, forms and, where appropriate, formulas to govern the following: (i) calculation of hold percentages; (ii) revenue drops; (iii) expense and overhead schedules; (iv) complimentary services; and (v) cash-equivalent transactions. (3) Job descriptions and the system of personnel and chain of command, establishing a diversity of responsibility among employees engaged in interactive gaming operations, including employees of an interactive gaming operator, and identifying primary and secondary management and supervisory positions for areas of responsibility, salary structure and personnel practices. (4) Procedures for the registration of players and establishment of interactive gaming accounts, including a procedure for authenticating the age, identity and physical address of an applicant for an interactive gaming account and whether the applicant is a person prohibited from establishing or maintaining an account under section 13B22 (relating to establishment of interactive gaming accounts). (5) Procedures for terminating a registered player's interactive gaming account and the return of any funds remaining in the interactive gaming account to the registered player. (6) Procedures for suspending or terminating a dormant interactive gaming account and the return of any funds remaining in the dormant interactive gaming account to the registered player. (7) Procedures for the logging in and authentication of a registered player in order to enable the player to commence interactive gaming and the logging off of the registered player when the player has completed play, including a procedure to automatically log a registered player out of the player's interactive gaming account after a specified period of inactivity. (8) Procedures for the crediting and debiting of a registered player's interactive gaming account. (9) Procedures for cashing checks, receiving electronic negotiable instruments and for redeeming chips, tokens or other cash equivalents. (10) Procedures for withdrawing funds from an interactive gaming account by the registered player. (11) Procedures for the protection of a registered player's funds, including the segregation of a registered player's funds from operating funds of the interactive gaming certificate holder. (12) Procedures for recording transactions pertaining to interactive gaming. (13) Procedures for the security and sharing of personally identifiable information of a registered player, funds in an interactive gaming account and other information as required by the board. The procedures shall include the means by which an interactive gaming certificate holder or interactive gaming operator will provide notice to a registered player related to the sharing of personally identifiable information. For the purpose of this paragraph, "personally identifiable information" shall mean any data or information that can be used, on its own or with other data or information, to identify, contact or otherwise locate a registered player, including a registered player's name, address, date of birth and Social Security number. (14) Procedures and security for the calculation and recordation of revenue. (15) Procedures for the security of interactive gaming devices and associated equipment. (16) Procedures and security standards as to receipt, handling and storage of interactive gaming devices and associated equipment. (17) Procedures and security standards to protect the interactive gaming certificate holder's interactive gaming skin or interactive gaming website and interactive gaming devices and associated equipment from hacking or tampering by any person. (18) Procedures for responding to suspected or actual hacking or tampering with an interactive gaming certificate holder's interactive gaming skin or interactive gaming website and interactive gaming devices and associated equipment, including partial or complete suspension of interactive gaming or the suspension of any or all interactive gaming accounts when warranted. (19) Procedures to verify each registered player's physical location each time a registered player logs into his or her interactive gaming account and at appropriate intervals thereafter as determined by the board. (20) Procedures to ensure that the interactive games are fair and honest and that appropriate measures are in place to deter, detect and, to the extent possible, to prevent cheating, including collusion, and use of cheating devices, including the use of software programs that make wagers according to algorithms. (21) Procedures to assist problem and compulsive gamblers, including procedures intended to prevent a person from participating in authorized interactive gaming in accordance with sections 1514 (relating to regulation requiring exclusion, ejection or denial of access of certain persons), 1515 (relating to repeat offenders excludable from licensed gaming facility) and 1516 (relating to list of persons self excluded from gaming activities). (22) Procedures to govern emergencies, including suspected or actual cyber attacks, hacking or tampering with the interactive gaming certificate holder's interactive gaming skin, interactive gaming platform or interactive gaming website. The procedures shall include the process for the reconciliation or repayment of a registered player's interactive gaming account. (c) Review of submissions.-- (1) The board shall review each submission required by subsections (a) and (b) and shall determine whether the submission conforms to the requirements of this chapter and regulations promulgated by the board and whether the system submitted provides adequate and effective controls for interactive gaming of the interactive gaming certificate holder making the submission. (2) If the board determines that the submission is not sufficient, it shall specify the insufficiencies in writing to the interactive gaming certificate holder, who shall make appropriate alterations to ensure compliance with the requirements of this chapter and regulations of the board. When the board determines a submission to be adequate in all respects, it shall notify the interactive gaming certificate holder. (3) Except as otherwise provided in subsection (a) or an emergency situation threatening the integrity of the interactive gaming platform, no interactive gaming certificate holder, interactive gaming operator or other person shall commence or alter interactive gaming operations unless and until the system of procedures, controls and alternations is submitted to and approved by the board. Cross References. Section 13B32 is referred to in section 13B29 of this title.

4 Pa.C.S. § 13B41 Interactive games and interactive gaming devices and associated equipment testing and certification standards.

(a) Testing required.-- (1) No interactive game or interactive gaming device or associated equipment shall be used to conduct interactive gaming unless it has been tested and certified by the board. The board may, in its discretion and for the purpose of expediting the approval process, refer testing to any testing laboratory as approved by the board. (2) The board shall establish, by regulation, technical standards for approval of interactive games and interactive gaming devices and associated equipment, including standards to govern mechanical, electrical or program reliability and security against tampering and threats, as it may deem necessary to protect a registered player from fraud or deception and to ensure the integrity of interactive gaming. (b) Cost of testing and certification.--Any costs associated with the board's testing and certification under this section shall be assessed on persons authorized by the board to manufacture, supply, distribute or otherwise provide interactive games and interactive gaming devices and associated equipment to interactive gaming certificate holders or to interactive gaming operators in this Commonwealth. The costs shall be assessed in accordance with a schedule adopted by the board. (c) Use of other state standards.--The board may determine whether the testing and certification standards for interactive games and interactive gaming devices and associated equipment as adopted by another jurisdiction within the United States are comprehensive and thorough and provide similar and adequate safeguards as those required by this chapter and regulations of the board. If the board makes that determination, it may permit the person authorized to manufacture, supply, distribute or otherwise provide interactive games and interactive gaming devices or associated equipment that have met the testing and certification standard in such other jurisdiction to furnish interactive games or interactive gaming devices and associated equipment to interactive gaming certificate holders in this Commonwealth without undergoing the full testing and certification under this section.

4 Pa.C.S. § 13B51 Interactive gaming authorization fee.

(a) Amount of authorization fee.-- (1) Each slot machine licensee that is issued an interactive gaming certificate to conduct interactive gaming in accordance with section 13B11 (relating to authorization to conduct interactive gaming) shall pay a one-time nonrefundable authorization fee in the following amount: (i) $10,000,000 if the slot machine licensee filed a petition under 13B12 (relating to interactive gaming certificate required and content of petition) within 90 days after the date the board begins accepting petitions under this chapter, or, for a slot machine licensee licensed after the effective date of this section, within 90 days of the issuance of the slot machine license. (ii) $4,000,000 for each category of interactive game authorized by the board if the slot machine licensee filed a petition under 13B12 more than 90 days but not more than 120 days after the date the board begins accepting petitions under this chapter, or, for a slot machine licensee licensed after the effective date of this section, more than 90 days but not more than 120 days after the issuance of the slot machine license. (2) Each qualified gaming entity that is issued an interactive gaming certificate to conduct interactive gaming in accordance with section 13B11 shall pay a one-time nonrefundable authorization fee in the amount of $4,000,000 for each category of interactive game authorized by the board. (3) Each interactive gaming operator shall pay a one-time nonrefundable authorization fee in the amount of $1,000,000. (b) Payment of fee.--Persons required to pay the authorization fee under subsection (a) shall remit the fee to the board within 60 days of the board's approval of its petition, license or conditional authorization. (c) Renewal fee.-- (1) Notwithstanding any other provision of this chapter, an interactive gaming certificate holder shall pay a renewal fee in the amount of $250,000 upon the renewal of its interactive gaming certificate. (2) Each interactive gaming operator shall pay a renewal fee of $100,000 upon the renewal of its interactive gaming license. (d) Deposit of fees.--The fees imposed and collected under this section shall be deposited in the General Fund. Cross References. Section 13B51 is referred to in sections 13B13, 13B14, 13B15 of this title.

4 Pa.C.S. § 13B52 Interactive gaming tax.

(a) Imposition of tax.--Each interactive gaming certificate holder that conducts interactive gaming shall report to the department and pay from its daily gross interactive gaming revenue, on a form and in the manner prescribed by the department, a tax of: (1) 14% of its daily gross interactive gaming revenue from peer-to-peer interactive games; (2) 14% of its daily gross interactive gaming revenue from non-peer-to-peer interactive games which simulate table games; and (3) 52% of its daily gross interactive gaming revenue from non-peer-to-peer interactive games which simulate slot machines. (b) Deposits and distributions.-- (1) The tax imposed under subsection (a) shall be payable to the department on a weekly basis and shall be based upon gross interactive gaming revenue derived during the previous week. (2) An interactive gaming certificate holder shall establish a separate bank account into which gross interactive gaming revenue shall be deposited and maintained until such time as the funds are paid to the department under this section. (c) Taxes on out-of-State wagering.--The tax rate which shall be assessed and collected by the department with respect to wagers placed by registered players located in this Commonwealth with an interactive gaming operator located outside of this Commonwealth, but authorized under an interactive gaming reciprocal agreement, shall be governed by the agreement but may not be less than the tax imposed under subsection (a). (d) Deposit of funds.--From the tax imposed under subsections (a) and (c), the following shall apply: (1) Taxes imposed under subsection (a)(1) and (2) shall be deposited into the General Fund. (2) Taxes imposed under subsection (a)(3) shall be distributed as follows: (i) Sixty-five percent shall be deposited into the Property Tax Relief Fund established under section 1409 (relating to Property Tax Relief Fund). (ii) Ten percent shall be deposited into a restricted receipt account within the State Treasury. Money in the restricted receipt account is appropriated to the department on a continuing basis for the purposes under this paragraph. Beginning in fiscal year 2018-2019 and each fiscal year thereafter, distributions from the restricted receipt account shall be as follows: (A) The department shall determine whether a county hosting a licensed facility received less than the amount the county received during fiscal year 2017-2018 under section 1403(c) (relating to establishment of State Gaming Fund and net slot machine revenue distribution). If the department determines that the county hosting a licensed facility received less than the amount the county received during fiscal year 2017-2018 under section 1403(c), the department shall calculate the difference. (B) The department shall make distributions from the restricted receipt account to any county determined under clause (A) to receive less in the current fiscal year than the county did in fiscal year 2017-2018. The amount distributed to a county under this paragraph may not exceed the difference between the amount received under 1403(c) in the current fiscal year and the amount received under 1403(c) in fiscal year 2017-2018. (C) If more than one county is owed funds under clause (B) and there are insufficient funds in the account to pay each county the entire amount of the decrease experienced by that county, each county shall receive funds in proportion of that county's decrease to the total amount of all decreases. (D) The department shall make distributions required under this paragraph no later than within 60 days after the end of the fiscal year. (E) Undistributed funds shall remain in the account and not lapse. (3) Twenty-five percent shall be deposited into a restricted receipts account to be established in the Commonwealth Financing Authority to be used exclusively for grants for projects in the public interest in the Commonwealth. Cross References. Section 13B52 is referred to in sections 13B20.4, 13B53, 13B54, 1403 of this title.

4 Pa.C.S. § 13B53 Local share assessment.

(a) Required payment.--In addition to the tax imposed under section 13B52 (relating to interactive gaming tax), each interactive gaming certificate holder that conducts interactive gaming shall pay on a weekly basis, on a form and in a manner prescribed by the department, a local share assessment equal to 2% of the interactive gaming certificate holder's daily gross interactive gaming revenue. (b) Deposit and distribution.--The department shall, on a quarterly basis, deposit the local share assessment imposed under subsection (a) as follows: (1) The following shall apply: (i) Except as provided under subparagraphs (ii), (iii) and (iv), 50% shall be added to and distributed according to the county classification of the host county and the slot machine license category of the interactive gaming certificate holder under section 1403(c)(2) (relating to establishment of State Gaming Fund and net slot machine revenue distribution). (ii) If a host county is both a county of the first class and a city of the first class which is coterminous, 50% shall be distributed to a school district of the first class. (iii) If a host county of the interactive gaming certificate holder is a home rule county of the second class A where a Category 1 slot machine licensee is located at a harness racetrack, 50% shall be distributed to an authority created by the host county under 53 Pa.C.S. Ch. 56 (relating to municipal authorities), to be used for grants within the interactive gaming certificate holder's host county. Grants awarded by the authority shall be used for economic development, municipal police and emergency services and other purposes in the public interest. (iv) If an interactive gaming certificate holder does not have a licensed gaming facility located in this Commonwealth, 50% shall be added to and distributed with the amount deposited under subsection (b)(2). (2) Fifty percent shall be deposited into a restricted receipts account to be established in the Commonwealth Financing Authority to be used exclusively for grants for projects in the public interest in the Commonwealth. Cross References. Section 13B53 is referred to in section 13B20.5 of this title.

4 Pa.C.S. § 13B54 Compulsive and problem gambling.

The following shall apply: (1) Each year, from the tax imposed in section 13B52 (relating to interactive gaming tax), an amount equal to .002 multiplied by the total gross interactive gaming revenue of all active and operating interactive gaming certificate holders shall be transferred into the Compulsive and Problem Gambling Treatment Fund established in section 1509 (relating to compulsive and problem gambling program). (2) Each year, from the tax imposed in section 13B52, an amount equal to .002 multiplied by the total gross interactive gaming revenue of all active and operating interactive gaming certificate holders shall be transferred to the Department of Drug and Alcohol Programs or successor agency to be used for drug and alcohol addiction treatment services, including treatment for drug and alcohol addiction related to compulsive and problem gambling, as set forth in section 1509.1 (relating to drug and alcohol treatment).

4 Pa.C.S. § 13B55 Certificate holder deposits.

(a) Deposits.-- (1) The department shall determine the appropriate assessment amount for each interactive gaming certificate holder, which amount shall be a percentage assessed on the interactive gaming certificate holder's gross interactive gaming revenues. Each interactive gaming certificate holder shall deposit funds into its account under section 1401 (relating to slot machine licensee deposits) on a weekly basis. (2) The percentage assessed shall not exceed an amount necessary to recover costs or expenses incurred by the board and the department in carrying out powers and duties under this chapter based on a budget submitted by the board and the department under subsection (b). (b) Itemized budget reporting.-- (1) The board and the department shall prepare and annually submit to the chairperson and minority chairperson of the Appropriations Committee of the Senate and the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives an itemized budget consisting of amounts to be appropriated out of the accounts established under this section as necessary to administer this chapter. (2) The itemized budget required under paragraph (1) shall be submitted in conjunction with the budget required to be submitted under section 1202(b)(28) (relating to general and specific powers). (c) Appropriation.--Costs and expenses from accounts established under section 1401 shall only be disbursed upon appropriation by the General Assembly. (d) Penalty.-- (1) An interactive gaming certificate holder that fails to timely remit to the department amounts required under this section shall be subject to, in addition to liability imposed in this chapter, a penalty of 5% per month up to a maximum of 25% of the amounts ultimately found to be due. The penalty shall be recovered by the department. (2) Penalties imposed under this subsection shall be deposited into the General Fund.

4 Pa.C.S. § 13B61 Participation in interactive gaming outside Commonwealth.

Notwithstanding any other provision of this chapter to the contrary, an interactive gaming certificate holder may accept interactive gaming wagers from a person who is not physically located in this Commonwealth or may accept interactive gaming wagers from a person physically present in this Commonwealth and transmit such wagers to an interactive gaming platform operated by one or more operators licensed in a foreign jurisdiction where interactive gaming is permitted if the board determines the following: (1) participation in interactive gaming and acceptance of wagers associated with interactive gaming from a person not physically located in this Commonwealth or accepting interactive gaming wagers from a person physically present in this Commonwealth and transmitting such wagers to an interactive gaming platform operated by one or more operators licensed in a foreign jurisdiction where interactive gaming is permitted is not inconsistent with Federal law or regulation or the law or regulation of the state or jurisdiction in which the person or operator is located; and (2) participation in interactive gaming is conducted pursuant to an interactive gaming reciprocal agreement with the state or jurisdiction where the person is located and the interactive gaming reciprocal agreement is not inconsistent with Federal law or regulation.

4 Pa.C.S. § 13B62 Institutional investors.

(a) Declaration of investment intent.--Notwithstanding any other provision of this part, the following shall apply: (1) An institutional investor holding 20% or less of the equity securities of an interactive gaming certificate holder's, interactive gaming operator's or applicant's holding, subsidiary or intermediary companies shall be granted a waiver of any investigation of suitability or other requirement if the securities are those of a corporation, whether publicly traded or privately held, and the holdings of the securities were purchased for investment purposes only. The institutional investor shall file a certified statement that it has no intention of influencing or affecting the affairs of the interactive gaming certificate holder, interactive gaming operator, applicant or any holding, subsidiary or intermediary company of an interactive gaming certificate holder, interactive gaming operator or applicant. However, an institutional investor shall be permitted to vote on matters put to the vote of the outstanding security holders. (2) The board may grant a waiver to an institutional investor holding a higher percentage of securities upon a showing of good cause and if the other conditions specified in paragraph (1) are met. (3) An institutional investor granted a waiver under this subsection who subsequently decides to influence or affect the affairs of an interactive gaming certificate holder, interactive gaming operator or applicant's holding, subsidiary or intermediary company of an interactive gaming certificate holder, interactive gaming operator or applicant shall provide not less than 30 days' notice of intent and shall file with the board a request for determination of suitability before taking any action that may influence or affect such affairs. An institutional investor shall be permitted to vote on matters put to the vote of the outstanding security holders. (4) If an institutional investor changes its investment intent or if the board finds reasonable cause to believe that the institutional investor may be found unsuitable, no action other than divestiture shall be taken by the institutional investor with respect to its security holdings until there has been compliance with any requirements established by the board, which may include the execution of a trust agreement in accordance with section 1332 (relating to appointment of trustee). (5) The interactive gaming certificate holder or interactive gaming operator or applicant or any holding, intermediary or subsidiary company of an interactive gaming certificate holder, interactive gaming operator or applicant shall notify the board immediately of any information about, or actions of, an institutional investor holding its equity securities where the information or action may impact the eligibility of the institutional investor for a waiver under this subsection. (b) Failure to declare.--If the board finds: (1) that an institutional investor holding any security of a holding or intermediary company of an interactive gaming certificate holder or interactive gaming operator or applicant or, where relevant, of another subsidiary company of a holding or intermediary company of an interactive gaming certificate holder or interactive gaming operator or applicant which is related in any way to the financing of the interactive gaming certificate holder or interactive gaming operator or applicant, fails to comply with the provisions of subsection (a); or (2) by reason of the extent or nature of its holdings, an institutional investor is in a position to exercise such a substantial impact upon the controlling interests of an interactive gaming certificate holder or interactive gaming operator or applicant that investigation and determination of suitability of the institutional investor is necessary to protect the public interest; then the board may take any necessary action otherwise authorized under this chapter to protect the public interest.

4 Pa.C.S. § 13B63 Internet cafes and prohibition.

(a) General rule.--No person shall operate a place of public accommodation, club, including a club or association limited to dues-paying members or similar restricted groups, or similar establishment in which computer terminals or similar access devices are advertised or made available to be used principally for the purpose of accessing authorized interactive games. No interactive gaming certificate holder or interactive gaming operator shall offer or make available computer terminals or similar access devices to be used principally for the purpose of accessing interactive games within a licensed facility. (b) Construction.--Nothing in this section shall be construed to require the owner or operator of a hotel or motel or other public place of general use in this Commonwealth to prohibit or block guests from playing authorized interactive games on their own computers or other devices. (c) Computer access.--An interactive gaming certificate holder or interactive gaming operator shall prevent registered players within a licensed facility from accessing authorized interactive games on the registered player's own computers or other devices through the use of geospatial technologies.

4 Pa.C.S. § 13C01 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Gross sports wagering revenue." (1) The total of cash or cash equivalents received from sports wagering minus the total of: (i) Cash or cash equivalents paid to players as a result of sports wagering. (ii) Cash or cash equivalents paid to purchase annuities to fund prizes payable to players over a period of time as a result of sports wagering. (iii) The actual cost paid by the sports wagering certificate holder for any personal property distributed to a player as a result of sports wagering. This subparagraph does not include travel expenses, food, refreshments, lodging or services. (2) The term does not include any of the following: (i) Counterfeit cash or chips. (ii) Coins or currency of other countries received as a result of sports wagering, except to the extent that the coins or currency are readily convertible to cash. (iii) Cash taken in a fraudulent act perpetrated against a sports wagering certificate holder for which the sports wagering certificate holder is not reimbursed. "Sporting event." A professional or collegiate sports or athletic event or a motor race event. "Sports wagering." The business of accepting wagers on sporting events or on the individual performance statistics of athletes in a sporting event or combination of sporting events by any system or method of wagering, including over the Internet through websites and mobile applications. The term includes, but is not limited to, exchange wagering, parlays, over-under, moneyline, pools and straight bets. The term does not include: (1) Pari-mutuel betting on the outcome of thoroughbred or harness horse racing as authorized under 3 Pa.C.S. Ch. 93 (relating to race horse industry reform). (2) Lottery games of the Pennsylvania State Lottery as authorized under the act of August 26, 1971 (P.L.351, No.91), known as the State Lottery Law. (3) Bingo as authorized under the act of July 10, 1981 (P.L.214, No.67), known as the Bingo Law. (4) Small games of chance as authorized under the act of December 19, 1988 (P.L.1262, No.156), known as the Local Option Small Games of Chance Act. (5) Slot machine gaming and progressive slot machine gaming as defined and authorized under this part. (6) Keno. (7) Fantasy contests. (8) iLottery under Chapter 5 (relating to lottery). "Sports wagering certificate." A certificate awarded by the board under this chapter that authorizes a slot machine licensee to conduct sports wagering in accordance with this chapter. "Sports wagering certificate holder." A slot machine licensee to whom the board has awarded a sports wagering certificate. "Sports wagering device." The term includes any mechanical, electrical or computerized contrivance, terminal, machine or other device, apparatus, equipment or supplies approved by the board and used to conduct sports wagering.

4 Pa.C.S. § 13C02 Regulatory authority.

The board shall promulgate regulations: (1) Establishing standards and procedures for sports wagering. The standards and procedures shall provide for the conduct and implementation of sports wagering by slot machine licensees, including any new sports wagering or variations or composites of approved sports wagering, provided that the board determines that the new sports wagering or any variations or composites or other approved sports wagering are suitable for use after a test or experimental period under the terms and conditions as the board may deem appropriate. (2) Establishing standards and procedures to govern the conduct of sports wagering and the system of wagering, including the manner in which wagers are received, payouts are remitted and point spreads, lines and odds are determined. The board may also promulgate regulations to govern the conduct of sports wagering and the system of wagering as a form of interactive gaming authorized by the Commonwealth. (3) Establishing the method for calculating gross sports wagering revenue and standards for the daily counting and recording of cash and cash equivalents received in the conduct of sports wagering, including ensuring that internal controls are followed and financial books and records are maintained and audits are conducted. The board shall consult with the department in establishing the regulations under this paragraph. (4) Establishing notice requirements pertaining to minimum and maximum wagers on sports wagering. (5) Establishing compulsive and problem gambling standards pertaining to sports wagering consistent with this part. (6) Establishing standards prohibiting persons under 21 years of age from participating in sports wagering. (7) Providing information pertaining to sports wagering in the board's annual report required under section 1211(a.1) (relating to reports of board). (8) Requiring each sports wagering certificate holder to: (i) Provide written information about sports wagering rules, payouts or winning wagers and other information as the board may require. (ii) Provide specifications approved by the board under section 1207(11) (relating to regulatory authority of board) to integrate and update the licensed facility's surveillance system to cover all areas in the licensed facility where sports wagering is conducted. The specifications shall include provisions providing the board and other persons authorized by the board with onsite access to the surveillance system or its signal. (iii) Designate one or more locations within the licensed facility to conduct sports wagering. (iv) Ensure that visibility of each sports wagering area in the licensed facility of the sports wagering certificate holder is not obstructed in any way that could interfere with the ability of the sports wagering certificate holder, the board and other persons authorized under this part or by the board to oversee the surveillance of the conduct of sports wagering. (v) Integrate the licensed facility's count room to ensure maximum security of the counting and storage of cash and cash equivalents. (vi) Equip each designated sports wagering area within the licensed facility with a sign indicating the permissible sports wagering minimum and maximum wagers. (vii) Ensure that no person under 21 years of age participates in sports wagering.

4 Pa.C.S. § 13C03 Temporary sports wagering regulations.

(a) Promulgation.--In order to facilitate the prompt implementation of this chapter, regulations promulgated by the board shall be deemed temporary regulations which shall expire not later than two years following the publication of the temporary regulations. The board may promulgate temporary regulations not subject to: (1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (2) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (3) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (b) Expiration.--Except for temporary regulations governing the rules of sports wagering approved by the board, the board's authority to adopt temporary regulations under subsection (a) shall expire two years after publication of the temporary regulations. Regulations adopted after this period shall be promulgated as provided by law. 2020 Partial Repeal. Section 18 of Act 114 provided that the provisions of section 13C03 are repealed insofar as they are inconsistent with the addition of section 1724.1-E(f) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code.

4 Pa.C.S. § 13C04 Unauthorized sports wagering.

(a) Offense defined.-- (1) It shall be unlawful for any person to operate, conduct, offer or expose sports wagering for play or to accept a bet or wager associated with sports wagering from any person physically located in this Commonwealth which at the time of play that is not within the scope of a valid sports wagering certificate issued by the board under this chapter. (2) It shall be unlawful for any person to knowingly provide services with respect to any sports wagering or bet or wager specified in paragraph (1). (b) Grading of offense.--A person who violates subsection (a) commits a misdemeanor of the first degree. For a second or subsequent violation of subsection (a), a person commits a felony of the second degree. (c) Penalties.-- (1) For a first violation of subsection (a), a person shall be sentenced to pay a fine of: (i) not more than $150,000, if the person is an individual; (ii) not less than $150,000 nor more than $300,000, if the person is a licensed manufacturer or supplier; or (iii) not less than $300,000 nor more than $600,000, if the person is a licensed gaming entity. (2) For a second or subsequent violation of subsection (a), a person shall be sentenced to pay a fine of: (i) not more than $300,000, if the person is an individual; (ii) not less than $300,000 nor more than $600,000, if the person is a licensed manufacturer or supplier; or (iii) not less than $600,000 nor more than $1,200,000, if the person is a licensed gaming entity. (d) Forfeiture.--If a person engages in sports wagering from a location where sports wagering is unauthorized, the person shall forfeit all winnings and any forfeited winnings shall be deposited into the Compulsive and Problem Gambling Treatment Fund established under section 1509(b) (relating to compulsive and problem gambling program). (e) Tax liability.--A person who offers sports wagering without a valid sports wagering certificate shall be liable for all taxes required by this chapter in the same manner and amounts as if the person were a licensee.

4 Pa.C.S. § 13C11 Authorization to conduct sports wagering.

(a) Persons who may be authorized.-- (1) (i) The board may authorize a slot machine licensee to conduct sports wagering and to operate a system of wagering associated with the conduct of sports wagering at the slot machine licensee's licensed facility, a temporary facility authorized under section 13C21(b) (relating to authorized locations for operation), an area authorized under section 13C21(c) or through an Internet-based system. (ii) Authorization shall be contingent upon the slot machine licensee's agreement to ensure that sports wagering will be conducted in accordance with this part and any other conditions established by the board. (iii) Nothing in this part shall be construed to create a separate license governing the conduct of sports wagering by slot machine licensees within this Commonwealth. (2) The board may authorize a sports wagering certificate holder to conduct sports wagering and to operate a system of wagering associated with the conduct of sports wagering as a form of interactive gaming authorized by the Commonwealth. (3) (i) Except as provided in this part, all individuals wagering on sporting events through authorized sports wagering must be physically located within this Commonwealth or within a state or jurisdiction with which the board has entered a sports wagering agreement. (ii) No individual under 21 years of age may make a wager or bet on sporting events through authorized sports wagering or have access to the designated sports wagering area of the licensed facility. (b) Federal authorization.-- (1) The board shall, when Federal law is enacted or repealed or a Federal court decision is filed that permits a state to regulate sports wagering, publish a notice in the Pennsylvania Bulletin certifying the enactment or repeal or the filing of the decision. (2) The board may not authorize the conduct of sports wagering in this Commonwealth until the notice is published as prescribed in paragraph (1). Cross References. Section 13C11 is referred to in section 13C61 of this title.

4 Pa.C.S. § 13C12 Petition requirements.

(a) General rule.--Unless otherwise prohibited under section 13A13 (relating to prohibitions), a slot machine licensee may seek approval to conduct sports wagering by filing a petition with the board, in a form and in a manner prescribed by the board. (b) Petition contents.--A petition seeking authorization to conduct sports wagering shall include the following: (1) The name, business address and contact information of the petitioner. (2) The name, business address, job title and a photograph of each principal and key employee of the petitioner who will be involved in the conduct of sports wagering and who is not currently licensed by the board, if known. (3) A brief description of the economic benefits expected to be realized by the Commonwealth, its municipalities and its residents if sports wagering is authorized at the petitioner's licensed facility. (4) The details of any financing obtained or that will be obtained to fund an expansion or modification of the licensed facility to accommodate sports wagering and to otherwise fund the cost of commencing sports wagering. (5) Information and documentation concerning financial background and resources, as the board may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the petitioner. (6) Information and documentation, as the board may require, to establish by clear and convincing evidence that the petitioner has sufficient business ability and experience to create and maintain a successful sports wagering operation. In making this determination, the board may consider the performance of the petitioner's slot machine and table game operation, including financial information, employment data and capital investment. (7) Information and documentation, as the board may require, to establish by clear and convincing evidence that the petitioner has or will have the financial ability to pay the authorization fee under section 13C61 (relating to sports wagering authorization fee). (8) Detailed site plans identifying the petitioner's proposed sports wagering area within the licensed facility. (9) Other information as the board may require. (c) Confidentiality.--Information submitted to the board under subsection (b)(4), (5), (6), (7) and (8) may be considered confidential by the board if the information would be confidential under section 1206(f) (relating to board minutes and records). Cross References. Section 13C12 is referred to in sections 1206, 13C13 of this title.

4 Pa.C.S. § 13C13 Standard for review of petitions.

(a) General rule.--The board shall approve a petition if the petitioner establishes, by clear and convincing evidence, all of the following: (1) The petitioner's slot machine license and table game operation certificate are in good standing with the board. (2) The conduct of sports wagering at the petitioner's licensed facility will increase revenues and employment opportunities. (3) The petitioner possesses adequate funds or has secured adequate financing to: (i) Fund any necessary expansion or modification of the petitioner's licensed facility to accommodate the conduct of sports wagering. (ii) Pay the authorization fee in accordance with section 13C61 (relating to sports wagering authorization fee). (iii) Commence sports wagering operations at its licensed facility. (4) The petitioner has the financial stability, integrity and responsibility to conduct sports wagering. (5) The petitioner has sufficient business ability and experience to create and maintain a successful sports wagering operation. (6) The petitioner's proposed internal and external security and proposed surveillance measures within the area of the licensed facility where the petitioner seeks to conduct sports wagering are adequate. (7) The petitioner has satisfied the petition application requirements and provided any other information required by section 13C12(b) (relating to petition requirements). (b) Timing of approval.--The board shall approve or deny a petition within 120 days following receipt of the completed petition.

4 Pa.C.S. § 13C14 Award of certificate.

(a) General rule.--Upon approval of a petition, the board shall award a sports wagering certificate to the petitioner. The award of a sports wagering certificate prior to the payment in full of the authorization fee required by section 13C61 (relating to sports wagering authorization fee) shall not relieve the petitioner from complying with the provisions of section 13C61. (b) Statement of conditions.--Upon awarding a sports wagering operation certificate, the board shall amend the slot machine licensee's statement of conditions pertaining to the requirements of this chapter. (c) Term of sports wagering certificate.--Subject to the power of the board to deny, revoke or suspend a sports wagering certificate issued in accordance with the requirements of this section, a sports wagering certificate shall be renewed every five years and shall be subject to the requirements of section 1326 (relating to renewals). Cross References. Section 13C14 is referred to in section 13C61 of this title.

4 Pa.C.S. § 13C15 Sports wagering certificate.

The following shall apply: (1) A sports wagering certificate shall be in effect unless: (i) suspended or revoked by the board consistent with the requirements of this part; (ii) the slot machine license held by the sports wagering certificate holder is suspended, revoked or not renewed by the board consistent with the requirements of this part; or (iii) the sports wagering certificate holder relinquishes or does not seek renewal of its slot machine license. (2) A sports wagering certificate holder that fails to abide by this chapter or any condition contained in the slot machine licensee's statement of conditions governing the conduct of sports wagering shall be subject to board-imposed administrative sanctions or other penalties authorized under this part.

4 Pa.C.S. § 13C16 Sports wagering manufacturers.

A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs, sells, leases, offers or otherwise makes modifications to any sports wagering device or associated equipment for use or operation in this Commonwealth for sports wagering purposes shall be licensed by the board under section 1317.1 (relating to manufacturer licenses) and shall be subject to application and licensure fees and fines as prescribed under section 1208 (relating to collection of fees and fines), as determined by the board.

4 Pa.C.S. § 13C21 Authorized locations for operation.

(a) Restriction.--A sports wagering certificate holder may only be permitted to conduct sports wagering at a licensed facility, a temporary facility authorized under subsection (b), an area authorized under subsection (c) or through an Internet-based system. (b) Temporary facilities.--The board may permit a sports wagering certificate holder to conduct sports wagering at a temporary facility that is physically connected to, attached to or adjacent to a licensed facility, as approved by the board, for a period not to exceed 18 months. (c) Powers and duties of board.-- (1) Upon request made by a sports wagering certificate holder, the board, in consultation with the commission, may determine the suitability of a Category 1 licensed gaming entity that is also a licensed racing entity authorized to conduct pari-mutuel wagering at nonprimary locations under 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) to conduct sports wagering at nonprimary locations. (2) No sports wagering certificate holder may be approved to conduct sports wagering in a nonprimary location unless the areas of the nonprimary location where sports wagering will be conducted are equipped with adequate security and surveillance equipment to ensure the integrity of the conduct of sports wagering. (3) An authorization granted under this subsection may not: (i) Impose any criteria or requirements regarding the contents or structure of a nonprimary location that are unrelated to the conduct of sports wagering. (ii) Authorize the placement or operation of slot machines or table games in a nonprimary location. Cross References. Section 13C21 is referred to in section 13C11 of this title.

4 Pa.C.S. § 13C22 Commencement of sports wagering operations.

No sports wagering certificate holder may operate or offer sports wagering until the board determines that: (1) The sports wagering certificate holder is in compliance with the requirements of this part. (2) The sports wagering certificate holder is prepared in all respects to offer sports wagering play to the public at the licensed facility. (3) The sports wagering certificate holder has implemented necessary internal and management controls and security arrangements and surveillance systems for the conduct of sports wagering. (4) The sports wagering certificate holder is in compliance with or has complied with section 13C61 (relating to sports wagering authorization fee). (5) Other conditions as the board may require to implement the conduct of sports wagering.

4 Pa.C.S. § 13C23 Condition of continued operation.

As a condition of continued operation, a sports wagering certificate holder shall maintain all books, records and documents pertaining to sports wagering in a manner and location within this Commonwealth as approved by the board. All books, records and documents related to sports wagering shall be: (1) segregated by separate accounts within the sports wagering certificate holder's books, records and documents, except for any books, records or documents that are common to slot machine, table game and sports wagering operations and approved by the board; (2) immediately available for inspection upon request of the board, the bureau, the department, the Pennsylvania State Police or the Attorney General, or agents thereof and, if the sports wagering certificate holder is conducting sports wagering at a nonprimary location, upon the request of the commission, during all hours of operation of the sports wagering certificate holder in accordance with regulations promulgated by the board; and (3) maintained for a period as the board, by regulation, may require.

4 Pa.C.S. § 13C24 Principals, key employees and occupation permits.

The following shall apply: (1) Except as provided under paragraph (2), each applicant for a principal license, key employee license or gaming employee occupation permit shall: (i) Consent to a background investigation to be conducted by the bureau. (ii) Submit to fingerprinting by the Pennsylvania State Police or an authorized agent of the Pennsylvania State Police. The Pennsylvania State Police or the authorized agent shall submit the fingerprints to the Federal Bureau of Investigation for purposes of verifying the identity of the individual and obtaining records of criminal arrests and convictions. (iii) Submit photographs consistent with the standards established by the board. (2) Nothing in this part shall be construed to require any individual who holds a principal license, a key employee license or a gaming employee occupation permit under Chapters 13 (relating to licensees), 13A (relating to table games) and 16 (relating to junkets) to obtain a separate license or permit to be employed in a sports wagering certificate holder's sports wagering operation authorized under this chapter.

4 Pa.C.S. § 13C25 Application of Clean Indoor Air Act.

For the purpose of section 3(b)(11) of the act of June 13, 2008 (P.L.182, No.27), known as the Clean Indoor Air Act, the term "gaming floor" shall include the areas of any facility where the sports wagering certificate holder is authorized to conduct sports wagering, except such areas off the gaming floor where contests or tournaments are conducted unless smoking is otherwise permitted in such areas.

4 Pa.C.S. § 13C26 Application of Liquor Code.

The provisions of section 493(24)(ii) of the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, shall also apply to sports wagering.

4 Pa.C.S. § 13C61 Sports wagering authorization fee.

(a) Amount.--Each slot machine licensee that is issued a sports wagering certificate to conduct sports wagering in accordance with section 13C11 (relating to authorization to conduct sports wagering) shall pay a one-time nonrefundable authorization fee in the amount of $10,000,000. (b) Payment of fee.--A slot machine licensee shall remit the authorization fee under subsection (a) to the board within 60 days of the approval of a petition to conduct sports wagering. Sports wagering may not be conducted until the fee under subsection (a) is paid in full. (c) Renewal fee.--Notwithstanding any other provision of this chapter, a slot machine licensee that is issued a sports wagering certificate shall pay a renewal fee in the amount of $250,000 upon the renewal of its sports wagering certificate in accordance with sections 1326 (relating to renewals) and 13C14(c) (relating to award of certificate). (d) Failure to pay by deadline.--If a petitioner or sports wagering certificate holder fails to pay the required authorization fee in full within the 60-day time period, the board shall impose a penalty and may grant the petitioner or sports wagering certificate holder up to a six-month extension to pay the authorization fee or any remaining portion of the authorization fee and the penalty. (e) Suspension of certificate.--The board shall suspend the sports wagering certificate if the sports wagering certificate holder fails to pay the total authorization fee and the penalty prior to the expiration of an extension period granted under subsection (d). The suspension shall remain in effect until final payment is made. (f) Deposit of fees.--Notwithstanding section 1208 (relating to collection of fees and fines), all sports wagering authorization fees, manufacturer license fees, manufacturer renewal fees and all fees for licenses issued under Chapter 16 (relating to junkets) and all money collected by the board for violations of this subchapter shall be deposited into the General Fund. Cross References. Section 13C61 is referred to in sections 13C12, 13C13, 13C14, 13C22 of this title.

4 Pa.C.S. § 13C62 Sports wagering tax.

(a) Imposition.--Each sports wagering certificate holder shall report to the department and pay from its daily gross sports wagering revenue, on a form and in the manner prescribed by the department, a tax of 34% of its daily gross sports wagering revenue. (b) Deposits and distributions.-- (1) The tax imposed under subsection (a) shall be payable to the department on a weekly basis and shall be based upon gross sports wagering revenue derived during the previous week. (2) All funds owed to the Commonwealth under this section shall be held in trust for the Commonwealth by the sports wagering certificate holder until the funds are paid to the department. A sports wagering certificate holder shall establish a separate bank account into which gross sports wagering revenue shall be deposited and maintained until such time as the funds are paid to the department under this section or paid into the fund under section 13C63(a) (relating to local share assessment). (3) The tax imposed under subsection (a) shall be deposited into the General Fund. Cross References. Section 13C62 is referred to in sections 13C63, 13C64 of this title.

4 Pa.C.S. § 13C63 Local share assessment.

(a) Required payment.--In addition to the tax imposed under section 13C62 (relating to sports wagering tax), each sports wagering certificate holder shall pay on a weekly basis, on a form and in the manner prescribed by the department, a local share assessment into a restricted receipts account established within the fund. All money owed under this section shall be held in trust by the sports wagering certificate holder until the money is paid into the restricted account. Funds in the restricted account are hereby appropriated to the department on a continuing basis for the purposes set forth under this section. (b) Distributions.--The department shall, on a quarterly basis, make distributions from the local share assessments deposited into the restricted account under subsection (a) into a restricted receipt account to be established in the Commonwealth Financing Authority to be used exclusively for grants for projects in the public interest in this Commonwealth. (c) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Local share assessment." Two percent of a sports wagering certificate holder's daily gross sports wagering revenue. Cross References. Section 13C63 is referred to in section 13C62 of this title.

4 Pa.C.S. § 13C64 Compulsive and problem gambling.

The following shall apply: (1) Each year, from the tax imposed under section 13C62 (relating to sports wagering tax), an amount equal to 0.002 multiplied by the total gross sports wagering revenue of all active and operating sports wagering certificate holders shall be transferred into the Compulsive and Problem Gambling Treatment Fund established under section 1509 (relating to compulsive and problem gambling program). (2) Each year, from the tax imposed under section 13C62, an amount equal to 0.002 multiplied by the total gross sports wagering revenue of all active and operating sports wagering certificate holders shall be transferred to the Department of Drug and Alcohol Programs or successor agency to be used for drug and alcohol addiction treatment services, including treatment for drug and alcohol addiction related to compulsive and problem gambling, as set forth under section 1509.1 (relating to drug and alcohol treatment).

4 Pa.C.S. § 13C71 Criminal activity.

Sports wagering conducted by a sports wagering certificate holder in accordance with this chapter shall not constitute a criminal activity under 18 Pa.C.S. § 5514 (relating to pool selling and bookmaking).

4 Pa.C.S. § 13F01 Legislative intent and purpose.

The General Assembly finds as follows: (1) The people of this Commonwealth have a vital economic interest in the continued success of this Commonwealth's gaming industry, including the race horse industry. Due to this economic interest, enhancements to current gaming activities must be authorized to ensure the ongoing competitiveness, viability and stability of the gaming industry in this Commonwealth. (2) A primary intent of the Race Horse Development and Gaming Act, as codified in this part, is to enhance live horse racing. However, the legalization of commercial gaming in states on the geographic borders of this Commonwealth makes it imperative to authorize new and innovative gaming activities related to horse racing and commercial casino-style gaming, which could be implemented by licensed gaming entities, and which could help ensure the viability of both horse racing and commercial gaming. (3) The intent of this chapter is to give licensed gaming entities the authority to conduct casino simulcasting at Category 2, Category 3 and Category 4 licensed facilities in order to expand horse racing opportunities through simulcasting and, thereby, enhancing the viability of this Commonwealth's race horse and commercial gaming industry.

4 Pa.C.S. § 13F02 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Casino simulcasting." The simultaneous transmission of live thoroughbred or harness horse race meetings from an in-State sending track, out-of-State sending track or a satellite facility, regardless of licensure status or whether the horse race meetings originate within this Commonwealth or any other state or jurisdiction, to a simulcasting facility in this Commonwealth by satellite devices, television cables, telephone lines or any other telecommunications technology for the purposes of conducting pari-mutuel wagering. "Casino simulcasting permit" or "simulcasting permit." A permit awarded by the board under section 13F12 (relating to casino simulcasting permit) which authorizes a licensed gaming entity to conduct casino simulcasting. "Casino simulcasting permit holder." A licensed gaming entity that holds a casino simulcasting permit issued by the board in accordance with section 13F12. "In-State sending track." A racetrack within this Commonwealth which is operated by a licensed racing entity and is permitted to conduct casino simulcasting. "Licensed gaming entity." A person who has been approved for and issued a Category 2 slot machine license, a Category 3 slot machine license or a Category 4 slot machine license in accordance with sections 1304 (relating to Category 2 slot machine license), 1305 (relating to Category 3 slot machine license), 1305.1 (relating to Category 4 slot machine license) and 1325 (relating to license or permit issuance) and who holds a casino simulcasting permit. "Out-of-State sending track." An interstate or international racetrack in a state or jurisdiction other than this Commonwealth which is equipped to conduct casino simulcasting and the operator of which is lawfully permitted to conduct horse race meetings and to provide simulcast horse races to slot machine licensees in this Commonwealth. "Simulcast horse race." A thoroughbred or harness horse race meeting conducted at a racetrack, whether within or outside this Commonwealth, which is simultaneously transmitted by an approved telecommunications technology to racetracks or simulcasting facilities in this Commonwealth in accordance with regulations of the commission. "Simulcasting facility." An area of a licensed facility established and maintained by a licensed gaming entity for the conduct of casino simulcasting in accordance with this chapter, 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) and regulations of the board and the commission.

4 Pa.C.S. § 13F05 Authorization to conduct simulcasting.

(a) Authority to conduct.--Notwithstanding any other provision of law or regulation, it shall be lawful for a licensed gaming entity to conduct casino simulcasting by agreement or agreements with a licensed racing entity for the conduct of casino simulcasting in accordance with the provisions of this chapter, 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) and the applicable regulations of the board and the commission promulgated under this chapter. (b) Administration and enforcement.--The board shall administer and enforce the provisions of this chapter as they relate to the conduct of casino simulcasting by a slot machine licensee and, except as provided in this chapter, shall adopt and promulgate regulations to carry out and enforce the provisions of this chapter.

4 Pa.C.S. § 13F06 Regulations.

(a) Adoption of regulations.--The board, in consultation with the commission, shall adopt and promulgate regulations to govern the conduct of casino simulcasting by licensed gaming entities in this Commonwealth. Such regulations shall establish the following: (1) The method and form of the application which a licensed gaming entity must follow and complete before consideration of the licensed gaming entity's application to conduct casino simulcasting. (2) The permissible communications technology which must be used to facilitate the conduct of casino simulcasting in accordance with regulations of the board, the commission and applicable Federal law and regulations. (3) The times during which a licensed gaming entity may conduct casino simulcasting shall be the same as the times authorized for the conduct of casino simulcasting by Category 1 slot machine licensees. (4) The approval of the terms and conditions of any agreement between a licensed gaming entity and a licensed racing entity related to the management or operation of casino simulcasting and the pari-mutuel system of wagering, including the percentage of the money retained by a licensed racing entity for pari-mutuel pools which may be distributed to the licensed gaming entity. (5) The required contents of agreements entered into between a licensed gaming entity and a licensed racing entity for the management or operation of casino simulcasting and the pari-mutuel system of wagering. (6) A requirement that wagering on simulcast horse race meetings shall only be conducted within a simulcasting facility which has been approved by the board, in consultation with the commission. (7) The standards and rules to govern the conduct of casino simulcasting and the system of pari-mutuel wagering associated with race horse simulcasting. (8) The reporting procedures and records which will be required from a licensed gaming entity to ensure that all money generated from casino simulcasting is accounted for and winners' names, when required under applicable Federal or State law, are filed with the appropriate taxing authorities. (9) Notwithstanding 3 Pa.C.S. § 9340 (relating to prohibition of wagering) or any other provision of law or regulation, the policies and procedures which will be adopted, implemented and followed to ensure that individuals under 21 years of age will be prohibited from participating in casino simulcasting or entering a simulcasting facility. (10) Any other requirements, conditions or controls which the board, in consultation with the commission, deems necessary and appropriate to administer and enforce the provisions of this chapter and to facilitate the implementation of this chapter. (b) Uniform regulation.--In adopting regulations under this chapter, the commission shall cooperate and work with the board to develop uniform regulations to govern the operation of casino simulcasting in this Commonwealth. Except as herein provided, the provisions of this chapter and any regulations promulgated under this chapter shall be considered as establishing uniform requirements and regulations for casino simulcasting at licensed facilities in this Commonwealth. (c) Adoption of existing regulations.--Notwithstanding subsection (b) or any other law or regulation to the contrary, the provisions of 3 Pa.C.S. § 9335 (relating to pari-mutuel pool distribution) and all regulations and supplements thereto or revisions thereof adopted by the commission under 3 Pa.C.S. § 9335, which relate to the retention of money in pari-mutuel pools and the pari-mutuel system of wagering on, before or after the effective date of this chapter are adopted as regulations under this chapter and shall remain in effect unless subsequently modified or superseded by regulations promulgated by the commission.

4 Pa.C.S. § 13F07 Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt implementation of this chapter, regulations promulgated by the board and commission shall be deemed temporary regulations which shall expire not later than two years following the publication of the temporary regulation. The board may promulgate temporary regulations not subject to: (1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (2) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (3) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (b) Expiration.--The authority to adopt temporary regulations under subsection (a) shall expire two years after the publication of the temporary regulations. Regulations adopted by the board and commission after the two-year period shall be promulgated as provided by law. (c) Publication of temporary regulations.--The board and the commission shall begin publishing temporary regulations governing casino simulcasting in the Pennsylvania Bulletin within 60 days of the effective date of this subsection. 2020 Partial Repeal. Section 18 of Act 114 provided that the provisions of section 13F07 are repealed insofar as they are inconsistent with the addition of section 1724.1-E(f) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code.

4 Pa.C.S. § 13F08 Simulcast agreements.

(a) Manner of agreement.--Any agreement entered into between a licensed gaming entity and a licensed racing entity to facilitate casino simulcasting shall be in writing and shall be filed with and approved by the board and the commission in accordance with regulations promulgated by the board in consultation with the commission. (b) Wager provisions.--Notwithstanding 3 Pa.C.S. § 9334 (relating to State Racing Fund and tax rate) or 9335 (relating to pari-mutuel pool distribution), the following shall apply: (1) If a licensed gaming entity offers casino simulcasting at its licensed facility through an agreement with a licensed racing entity, the agreement shall specify the percentage of the money wagered each racing day at the simulcasting facility and remaining in the wagering pools after the required distributions under 3 Pa.C.S. § 9335 that will be paid to the licensed gaming entity. The amount retained by a licensed gaming entity shall not exceed 25% of the money retained by the licensed racing entity under 3 Pa.C.S. § 9335. (2) (Reserved). (c) Regulations.--The board, in consultation with the commission, shall establish regulations to administer the retention requirements under this section.

4 Pa.C.S. § 13F11 Application for permit and requirements.

(a) Applications.--A licensed gaming entity shall file an application for a casino simulcasting permit with the board. The application shall include the following: (1) The name, business address and contact information of the applicant. (2) The name and location of the applicant's licensed facility. (3) The name and business address, job title and a photograph of each principal and key employee of the applicant who will be involved in the conduct of casino simulcasting and who is not currently licensed by the board or the commission, if known. (4) The estimated number of full-time and part-time employment positions that will be created at the licensed facility if casino simulcasting is authorized and an updated hiring plan under section 1510(a) (relating to labor hiring preferences) which outlines the applicant's plan to promote the representation of diverse groups and Commonwealth residents in the employment positions. (5) A brief description of the economic benefits expected to be realized by the Commonwealth, the Department of Agriculture and the race horse industry in this Commonwealth if casino simulcasting is authorized at the applicant's licensed facility. (6) The details of any financing, if applicable, obtained or that will be obtained to fund an expansion or modification of the licensed facility to accommodate casino simulcasting or construct a simulcasting facility or to otherwise fund the cost of commencing casino simulcasting operations. (7) Information and documentation concerning financial background and resources, as the board may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant. (8) A copy of or a detailed description of the terms and conditions of any agreement or agreements the licensed gaming entity has entered into or will enter into with a licensed racing entity to facilitate the conduct of casino simulcasting. (9) A detailed description of any financial arrangements between a licensed gaming entity and a licensed racing entity related to the conduct of casino simulcasting. (10) Detailed site and architectural plans of the proposed simulcasting facility within the applicant's licensed facility. (11) Any other information as the board may require. (b) Review and approval of application.--The board shall review and approve an application for a simulcasting permit if the applicant establishes, by clear and convincing evidence, all of the following: (1) The applicant's slot machine license and table game operation certificate are in good standing with the board. (2) The conduct of casino simulcasting at the applicant's licensed facility will have a positive economic impact on the Commonwealth and the race horse industry in this Commonwealth through increased revenues, increased purses and employment opportunities. (3) The applicant possesses adequate funds or has secured adequate financing to: (i) Fund any necessary expansion or modification of the applicant's licensed facility or to construct a simulcasting facility to accommodate the conduct of casino simulcasting. (ii) Pay the costs of establishing, maintaining and operating the simulcasting facility. (iii) Commence casino simulcasting operations. (4) The applicant has entered into or will enter into an agreement with a licensed racing entity to manage or operate casino simulcasting operations, and the agreement has been approved by the commission. (5) The applicant has the expertise to manage casino simulcasting. (6) The applicant has the financial stability, integrity and responsibility to conduct casino simulcasting. (7) The applicant has sufficient business ability and experience to create and maintain a successful casino simulcasting operation. (8) The applicant's proposed internal and external security controls and proposed surveillance measures within the area of the licensed facility where the applicant seeks to conduct casino simulcasting are adequate. (c) Confidentiality.--Information submitted to the board under subsection (a)(6), (7) and (8) may be considered confidential by the board if the information would be confidential under section 1206(f) (relating to board minutes and records). Cross References. Section 13F11 is referred to in section 13F12 of this title.

4 Pa.C.S. § 13F12 Casino simulcasting permit.

(a) Issuance of permit.--Upon review and approval of an application submitted to the board in accordance with section 13F11 (relating to application for permit and requirements), the board shall issue a casino simulcasting permit to the applicant. (b) Content of permit.-- (1) A casino simulcasting permit shall include a list of the horse race meetings which are proposed to be simulcast by the casino simulcasting permit holder at its simulcasting facility, including the names and locations of the in-State sending tracks and out-of-State sending tracks, and the start date and expiration date of any agreement or agreements the casino simulcasting permit holder has entered into or will enter into with a licensed racing entity for the operation of casino simulcasting. (2) A casino simulcasting permit holder shall be required to update the initial casino simulcasting application at times prescribed by the board, in consultation with the commission. Cross References. Section 13F12 is referred to in sections 1206, 13F02 of this title.

4 Pa.C.S. § 13F13 Casino simulcasting facilities.

(a) Establishment of simulcasting facility.--A licensed gaming entity approved for and issued a permit to operate casino simulcasting under this chapter shall establish a simulcasting facility as part of its licensed facility. The simulcasting facility may be adjacent to, but shall not be part of, any room or location in which slot machines or table games are operated or conducted in accordance with the provisions of this part. The following shall apply: (1) The simulcasting facility shall conform to all requirements concerning square footage, equipment, security measures and related matters which the board, in consultation with the commission, shall by regulation prescribe. (2) The space or area required for the establishment of a simulcasting facility shall not be used to decrease the number of slot machines or table games in operation at the licensed facility or to reduce the space approved by the board for the operation of slot machines and the conduct of table games. (3) The cost of establishing, maintaining and operating a simulcasting facility shall be the sole responsibility of the licensed gaming entity. (b) Video display monitors.--Notwithstanding 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) or regulations promulgated pursuant to 3 Pa.C.S. Ch. 93, the regulations promulgated by the board shall provide for the installation of video display technology in approved areas of licensed facilities to deliver simulcast horse race meetings to patrons via video walls and other such innovative video display technology. The board may collaborate with the commission in developing regulations to govern the installation and operation of video display monitors in accordance with this subsection.

4 Pa.C.S. § 13F14 License, registration or permitting of employees required.

Except as provided in this part, all persons engaged directly in wagering-related activities at a simulcasting facility, whether employed by the licensed gaming entity or licensed racing entity and all other employees of the licensed gaming entity or licensed racing entity who work or will work in the simulcasting facility, shall be licensed, registered or permitted in accordance with regulations promulgated by the board in collaboration with the commission.

4 Pa.C.S. § 13F15 Key employees and occupation permits.

Nothing in this subchapter shall be construed to require any individual who holds a principal license, a key employee license or gaming employee license under Chapters 13 (relating to licensees) and 13A (relating to table games) or who holds a license under 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) to obtain a separate license, permit or registration to be employed in a casino simulcasting permit holder's casino simulcasting operation authorized under this chapter, if the board, in consultation with the commission, determines that licensure under the provisions of this part or 3 Pa.C.S. Ch. 93 is sufficient and will not compromise the integrity of casino simulcasting. Cross References. Section 13F15 is referred to in section 13F33 of this title.

4 Pa.C.S. § 13F31 Conduct of casino simulcasting.

(a) Wagering.--Wagering on simulcast horse races shall be conducted only in the simulcasting facility. (b) Required security.-- (1) The security measures for a simulcasting facility shall include, but may not be limited to, the installation by the licensed gaming entity of a closed-circuit television system according to specifications promulgated by the board, in consultation with the commission. (2) The board and the commission shall have access to the simulcast system or its signal in accordance with regulations promulgated by the board, in consultation with the commission.

4 Pa.C.S. § 13F32 Transmission of live races.

The following shall apply: (1) A licensed racing entity which operates interstate or international simulcasting of horse race meetings in this Commonwealth shall have discretion to transmit all or some of the live races conducted at the racetrack to the licensed facility of a licensed gaming entity which has established a simulcasting facility under this chapter. Any race which is transmitted from an in-State sending track may be transmitted to all licensed gaming entities which have established simulcasting facilities. (2) A licensed gaming entity which establishes a simulcasting facility and conducts casino simulcasting in accordance with this chapter shall, as a condition of continued operation of casino simulcasting, receive all live races which are transmitted by in-State sending tracks.

4 Pa.C.S. § 13F33 Accounting controls and audit protocols.

(a) Approval.--Prior to the commencement of casino simulcasting, a casino simulcasting permit holder shall submit to the board for approval all proposed site and architectural plans, internal control systems and audit protocols for the casino simulcasting permit holder's casino simulcasting operations. (b) Minimum requirements.--A casino simulcasting permit holder's internal controls and audit protocols shall: (1) Provide for reliable records, accounts and reports of any financial event that occurs in the conduct of casino simulcasting, including reports to the board and commission related to casino simulcasting, as may be required by regulation of the board, in consultation with the commission. (2) Provide for accurate and reliable financial records related to the conduct of casino simulcasting and the pari-mutuel system of wagering. (3) Establish procedures and security for the counting, recording and storage of money generated from the conduct of casino simulcasting. (4) Establish procedures and security standards for the maintenance of telecommunications equipment and video display technology used in connection with the conduct of casino simulcasting. (5) Establish procedures and rules to govern the conduct of casino simulcasting and the responsibility of employees related to casino simulcasting. (6) Establish procedures for the collection, recording and deposit of revenue from the conduct of casino simulcasting, including the roles of the commission, the department, licensed racing entities and licensed gaming entities in the collection and recording of the revenue. (7) Ensure that the system of pari-mutuel wagering used in the conduct of casino simulcasting is in accordance with 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) and regulations of the commission promulgated under 3 Pa.C.S. (relating to agriculture). (8) Ensure, in consultation with the commission, the proper and timely accounting for and retention of percentages for pari-mutuel pools and the proper and timely distribution of money in any pari-mutuel pool generated from casino simulcasting. (9) Ensure that all functions, duties and responsibilities related to casino simulcasting are appropriately segregated and performed in accordance with sound financial practices by qualified employees. (10) Permit use of its simulcasting facility by the board, the bureau, the commission and other persons authorized under this part or by the board and the commission to facilitate their ability to perform regulatory and oversight functions under this chapter. (c) Submission to board.--The submission required under subsection (a) shall include a detailed description of the casino simulcasting permit holder's administrative and accounting procedures related to casino simulcasting, including its written system of internal controls. Each written system of internal controls shall include: (1) An organizational chart depicting appropriate functions and responsibilities of employees involved in casino simulcasting. (2) A description of the duties and responsibilities of each position shown on the organizational chart. (3) The record retention policy of the casino simulcasting permit holder. (4) The procedure to be utilized to ensure that money generated from the conduct of casino simulcasting is safeguarded, including mandatory counting and recording procedures. (5) A statement signed by the casino simulcasting permit holder's chief financial officer or other competent person attesting that the signatory believes, in good faith, that the system satisfies the requirements of this section. (d) Review.--Prior to authorizing a casino simulcasting permit holder to conduct casino simulcasting, the board, in consultation with the commission, shall review the system of internal controls submitted under subsection (c) to determine whether it conforms to the requirements of this subchapter and whether it provides adequate and effective controls for the conduct of casino simulcasting. (e) License, registration or permitting of employees required.--Except as provided in section 13F15 (relating to key employees and occupation permits), persons engaged directly in wagering-related activities at a simulcasting facility, whether employed by the licensed gaming entity or a licensed racing entity and all other employees of the licensed gaming entity who work or will work in the simulcasting facility shall be licensed, registered or permitted in accordance with regulations promulgated by the board in collaboration with the commission.

4 Pa.C.S. § 13F34 Condition of continued operation.

As a condition of continued operation, a casino simulcasting permit holder shall agree to maintain all books, records and documents pertaining to casino simulcasting in a manner and location within this Commonwealth as approved by the board, in consultation with the commission. All books, records and documents related to casino simulcasting shall: (1) Be organized in a manner to clearly depict by separate record the total amount of money contributed to every pari-mutuel pool in accordance with the applicable provisions of 3 Pa.C.S. Ch. 93 (relating to race horse industry reform) and any regulation promulgated under 3 Pa.C.S. Ch. 93. (2) Be segregated by separate accounts within the licensed gaming entity's books, records and documents, except for any books, records or documents that are common to slot machine operations, table game operations and casino simulcasting, as determined by the board in consultation with the commission. (3) Be immediately available for inspection upon request of the board, the commission, the bureau, the department, the Pennsylvania State Police or the Attorney General, or agents thereof, during all hours of operation of the casino simulcasting permit holder's simulcasting facility in accordance with regulations promulgated by the board in consultation with the commission. (4) Be maintained for a specific period of time as the board, in consultation with the commission, by regulation, may require.

4 Pa.C.S. § 13F41 Casino simulcasting authorization fee.

A casino simulcasting permit shall not be subject to the payment of an authorization fee, renewal or a renewal fee or the payment of an additional permit fee.

4 Pa.C.S. § 13F42 Retention and distribution of money and pari-mutuel pools.

(a) Wagers included in pari-mutuel pools.-- (1) Sums wagered at a simulcasting facility on the results of a simulcast horse race shall be included in the appropriate pari-mutuel pool generated for the race being transmitted in accordance with 3 Pa.C.S. § 9335 (relating to pari-mutuel pool distribution) and shall be distributed in accordance with 3 Pa.C.S. § 9335 or any regulations promulgated under 3 Pa.C.S. § 9335. (2) Payments to persons holding winning tickets at a licensed facility shall be made according to the same odds as those generated at the in-State sending track. (3) A person placing a wager on a simulcast horse race at a simulcasting facility shall not be charged a fee for placing the wager in addition to the amount wagered. (b) Computation of money wagered.--All money wagered by players on horse race meetings at a simulcasting facility shall be computed in the amount of money wagered each racing day for purposes of taxation under 3 Pa.C.S. § 9334 (relating to State Racing Fund and tax rate), all thoroughbred races shall be considered a part of a thoroughbred horse race meeting and all harness races shall be considered a part of a harness horse race meeting for purposes of 3 Pa.C.S. § 9334.

4 Pa.C.S. § 13F43 Casino simulcasting taxes.

All money wagered by players on horse race meetings under this chapter shall be subject to the tax imposed under 3 Pa.C.S. § 9334 (relating to State Racing Fund and tax rate).

4 Pa.C.S. § 13F44 Construction.

Nothing in this chapter and section 1207 (relating to regulatory authority of board), as it relates to casino simulcasting, shall be construed to alter, preempt or otherwise impinge the authority of the commission under 3 Pa.C.S. Ch. 93 (relating to race horse industry reform).

4 Pa.C.S. § 1301 Authorized slot machine licenses.

Except as provided under section 1305.1 (relating to Category 4 slot machine license), there shall be three distinct classifications of slot machine licenses, designated by category, each permitting a licensed racing entity or person to apply for a qualifying license category and, upon issuance by the board in its discretion, to place and operate slot machines at a licensed facility. Except for conditional Category 1 license applications pursuant to section 1315 (relating to conditional Category 1 licenses), it is mandatory that the board shall consider, approve, condition or deny the approval of all initial applications for each and every category of slot machine licenses collectively and together, in a comprehensive Statewide manner, within 12 months following the time set by the board at which all applications are to be filed and deemed complete by the board. The board shall approve, condition or deny the issuance of a slot machine license of any category within the time period provided for herein. Following approval of an application for a slot machine license, the applicant shall provide formal notification to the board as soon as: (1) it fulfills all required conditions for issuance of the license; and (2) the board's decision approving the application is a final, binding, nonappealable determination which is not subject to a pending legal challenge. Upon receipt of such formal notification and upon conducting any necessary verification, the board shall issue a slot machine license to the applicant. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) Cross References. Section 1301 is referred to in sections 1306, 1315 of this title.

4 Pa.C.S. § 1302 Category 1 slot machine license.

(a) Eligibility.--A person may be eligible to apply for a Category 1 license to place and operate slot machines at a licensed racetrack facility if the person: (1) has been issued a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct thoroughbred or harness race meetings respectively with pari-mutuel wagering and has conducted live horse races for not less than two years immediately preceding the effective date of this part; (2) has been approved or issued a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct thoroughbred or harness race meetings respectively with pari-mutuel wagering within 18 months immediately preceding the effective date of this part and will successfully conduct live racing pursuant to the requirements of section 1303 (relating to additional Category 1 slot machine license requirements); (3) has been approved by the State Harness Racing Commission, after the effective date of this part, to conduct harness race meetings with pari-mutuel wagering and will conduct live racing pursuant to the requirements of section 1303; or (4) is a successor in interest to persons eligible under paragraph (1), (2) or (3) who comply with the requirements of section 1328 (relating to change in ownership or control of slot machine licensee). Nothing in this part shall be construed to permit the approval or issuance of more than one slot machine license at a licensed racetrack facility. (b) Location.--A Category 1 license may only be issued to an eligible person authorizing slot machine operations at the particular licensed racetrack facility identified in the application. No Category 1 licensed facility shall be located within 20 linear miles of another Category 1 licensed facility. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 amended subsec. (a)(4). Cross References. Section 1302 is referred to in sections 1303, 1315 of this title.

4 Pa.C.S. § 1303 Additional Category 1 slot machine license requirements.

(a) Eligibility.--In addition to the criteria prescribed in section 1302 (relating to Category 1 slot machine license), an applicant for a Category 1 slot machine license shall be eligible for a license to place and operate slot machines at a licensed facility only if the applicant meets one of the following criteria: (1) the licensed racing entity or its predecessor owner of the licensed racetrack has conducted live horse races for not less than two years immediately preceding the effective date of this part; or (2) the licensed racing entity has not previously conducted live racing at a racetrack but will conduct live racing for a minimum of 150 days to begin in the year which begins two years following the issuance of its slot machine license for the racetrack unless the appropriate commission determines, upon application, that it is not practically feasible for the licensed racing entity to conduct live racing for a minimum of 150 days due to projected or actual weather conditions. Failure to meet the required minimum number of days will result in immediate suspension of the slot machine license. (b) Required racing days.--Except as provided in subsection (a)(2), a Category 1 slot machine licensee must conduct live racing at the racetrack for at least 100 days per calendar year for each license held by the licensed racing entity pursuant to the Race Horse Industry Reform Act, and the aggregate number of live racing days at the racetrack where the Category 1 slot machine licensee conducts live racing shall not be less than 95% of the total number of horse or harness racing days that were scheduled in 1986 at that racetrack. If a racing day is canceled for reasons beyond the control of the licensed racing entity, the appropriate commission shall grant the licensee the right to conduct that racing day in the same or next ensuing calendar year. The purse for that racing day shall not be used for the purse of other scheduled racing days of that calendar year and must be used for the purse of such rescheduled day. (c) Limitations.--The issuance of a Category 1 slot machine license shall entitle the licensee to operate slot machines only within the grounds of a licensed racetrack. (d) Authorization.--Authorization for a Category 1 slot machine licensee to continue the operation of slot machines shall be limited to those licensees that: (1) Have a written live racing agreement with a horsemen's organization representing a majority of owners and trainers at the racetrack where the licensed racing entity conducts live racing. (2) Have 95% of the total number of horse or harness racing days that were scheduled in 1986 by it or its predecessor at the racetrack where the Category 1 slot machine licensee conducts live racing, and the aggregate number of live racing days at the racetrack where the Category 1 slot machine licensee conducts live racing shall not be less than 95% of the total number of horse or harness racing days that were scheduled in 1986 at that racetrack. A new licensee which opens a new racetrack and which will successfully conduct live racing for a minimum of 150 days to begin no later than in the year which begins two years following the issuance of its slot machine license for the racetrack, unless the appropriate commission determines upon application that it is not practically feasible for the licensed racing entity to conduct live racing for a minimum of 150 days due to projected or actual weather conditions, shall be allowed to operate slot machines, from the date its slot machine license is issued and intrastate and interstate simulcast in accordance with the Race Horse Industry Reform Act, from the first day of the calendar year in which it conducts live racing days. (3) Unless the horsemen's organization representing a majority of the owners and trainers consents to a lower number of required racing days at the racetrack, subject to actions or activities beyond the control of the licensee, conduct not fewer than eight live races per race date during each meet at the racetrack where the licensed racing entity conducts live racing, except for thoroughbred tracks on the day designated as a Breeder's Cup event day when the licensed racing entity shall hold a minimum of five live races. The Category 1 slot machine licensee shall not waive or modify the provisions pertaining to the required number of racing days under paragraph (2) and races per day scheduled in this paragraph without the consent of the horsemen's organization representing a majority of owners and trainers at the racetrack. (4) Notwithstanding the provisions of paragraph (1), in the event that a written live racing agreement has not been entered into, permission for any licensee to operate slot machines at racetracks shall be granted provided that the Category 1 slot machine licensee has continued to conduct live racing in accordance with paragraphs (2) and (3) and keeps its racetrack open to the general population of owners, trainers and horses stabled there for training and stabling on a regular basis, when it is normally open for live racing and during such periods, and continues to comply with all provisions of the most recently expired live racing agreement, including recognition of the then existing horsemen's organization at each such racetrack as the sole representative of the horsemen at that time, and pays purses as defined in the most recently expired live racing agreement plus the applicable purse revenue distributed to licensed racing entities from the operation of slot machines under this part. Nothing in this part shall exempt an existing or future licensed racetrack from the requirements of the Race Horse Industry Reform Act requiring a licensed corporation to have a written and unexpired live racing agreement with the horsemen's organization representing a majority of owners and trainers at the racetrack where the licensed corporation conducts or will conduct live racing dates in order to continue or commence any form of simulcasting. (5) Notwithstanding any other provision of the law to the contrary, account wagers authorized pursuant to section 218(b) of the Race Horse Industry Reform Act shall only be accepted by a licensed corporation in accordance with the provisions of the Race Horse Industry Reform Act, and no entity that is not a licensed corporation under that act shall accept an account wager from any person within this Commonwealth. References in Text. The act of December 17, 1981, P.L.435, No.135, known as the Race Horse Industry Reform Act, referred to in this section, was repealed by the act of February 23, 2016, P.L.15, No.7. Cross References. Section 1303 is referred to in section 1302 of this title; sections 9317, 9329 of Title 3 (Agriculture).

4 Pa.C.S. § 1304 Category 2 slot machine license.

(a) Eligibility.-- (1) A person may be eligible to apply for a Category 2 license if the applicant, its affiliate, intermediary, subsidiary or holding company is not otherwise eligible to apply for a Category 1 license and the person is seeking to locate a licensed facility in a city of the first class, a city of the second class or a revenue- or tourism-enhanced location. It shall not be a condition of eligibility to apply for a Category 2 license to obtain a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct thoroughbred or harness race meetings respectively with pari-mutuel wagering. (2) If the person seeking a slot machine license proposes to place the licensed facility upon land designated a subzone, an expansion subzone or an improvement subzone under the act of October 6, 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, the person shall, at any time prior to the application being approved, submit a statement waiving the exemptions, deductions, abatements or credits granted under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act if the board approves the application. (b) Location.-- (1) Two Category 2 licensed facilities and no more shall be located by the board within a city of the first class, and one Category 2 licensed facility and no more shall be located by the board within a city of the second class. No Category 2 licensed facility located by the board within a city of the first class shall be within ten linear miles of a Category 1 licensed facility regardless of the municipality where the Category 1 licensed facility is located. Except for any Category 2 licensed facility located by the board within a city of the first class or a city of the second class, no Category 2 licensed facility shall be located within 30 linear miles of any Category 1 licensed facility that has conducted over 200 racing days per year for the two calendar years immediately preceding the effective date of this part and not within 20 linear miles of any other Category 1 licensed facility. Except for any Category 2 licensed facility located by the board within a city of the first class, no Category 2 licensed facility shall be located within 20 linear miles of another Category 2 licensed facility. (2) Within five days of approving a license for an applicant with a proposed licensed facility consisting of land designated a subzone, an expansion subzone or an improvement subzone under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act for a slot machine license under this section, the board shall notify the Department of Community and Economic Development. The notice shall include a description of the land of the proposed licensed facility which is designated a subzone, an expansion subzone or an improvement subzone. Within five days of receiving the notice required by this paragraph, the Secretary of Community and Economic Development shall decertify the land of the proposed licensed facility as being a subzone, an expansion subzone or an improvement subzone. Upon decertification in accordance with this paragraph and notwithstanding Chapter 3 of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, a political subdivision may amend the ordinance, resolution or other required action which granted the exemptions, deductions, abatements or credits required by the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act to repeal the exemptions, deductions, abatements or credits for the land decertified. (3) Notwithstanding any other provision of law, the governing body of a city of the first class shall not exempt from real property taxation or provide any real property tax abatement under the act of December 1, 1977 (P.L.237, No.76), known as the Local Economic Revitalization Tax Assistance Act, to a Category 2 licensed facility located within the city, or any improvements to such facility, unless the owner of the licensed facility enters into or has entered into a tax settlement agreement or payment in lieu of taxes agreement with the city, including any amendments, supplements or modifications of such agreements. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.; Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 amended subsec. (b). Cross References. Section 1304 is referred to in section 13F02 of this title.

4 Pa.C.S. § 1305 Category 3 slot machine license.

(a) Eligibility.-- (1) A person may be eligible to apply for a Category 3 slot machine license if the applicant, its affiliate, intermediary, subsidiary or holding company has not applied for or been approved or issued a Category 1 or Category 2 slot machine license and the person is seeking to locate a Category 3 licensed facility in a well-established resort hotel having no fewer than 275 guest rooms under common ownership and having substantial year-round recreational guest amenities. The applicant for a Category 3 license shall be the owner or be a wholly owned subsidiary of the owner of the well-established resort hotel. A Category 3 license may only be granted upon the express condition that an individual may not enter a gaming area of the licensed facility if the individual is not any of the following: (i) A registered overnight guest of the well-established resort hotel. (ii) A patron of one or more of the amenities provided by the well-established resort hotel. (iii) An authorized employee of the slot machine licensee, of a gaming service provider, of the board or of any regulatory, emergency response or law enforcement agency while engaged in the performance of the employee's duties. (iv) An individual holding a valid membership approved in accordance with paragraph (1.1) or a guest of such individual. (1.1) The board may approve a seasonal or year-round membership that allows an individual to use one or more of the amenities provided by the well-established resort hotel holding a Category 3 slot machine license. The membership shall allow the member and one guest to enter the gaming floor at any time as long as the guest is accompanied by the individual owning or holding the membership. The board shall base its approval of a membership on all of the following: (i) The duration of the membership. (ii) The amenity covered by the membership. (iii) Whether the fee charged for the membership represents the fair market value for the use of the amenity. (1.2) The requirements under paragraph (1)(i), (ii) and (iii) and the membership fee required under paragraphs (1)(iv) and (1.1) shall not apply to the licensed facility if the Category 3 slot machine licensee makes notification to the board and a payment of $1,000,000 to the department for deposit into the General Fund. (2) Notwithstanding section 1512(a) and (a.1) (relating to public official financial interest), if at the time of application an applicant has terminated public office or employment as an executive-level public employee within the last calendar year, the applicant shall be eligible to apply for a slot machine license under this section but may not be issued a license until one year following the date of termination as a public official or executive-level public employee. An application submitted in accordance with this paragraph shall not constitute a violation of section 1512(a) or (a.1). (3) If the person seeking a slot machine license proposes to place the licensed facility upon land designated a subzone, an expansion subzone or an improvement subzone under the act of October 6, 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, the person shall, at any time prior to the application being approved, submit a statement waiving the exemptions, deductions, abatements or credits granted under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act if the board approves the application. (b) Location.--The following shall apply: (1) Except as provided in paragraph (1.1), no Category 3 license shall be located by the board within 15 linear miles of another licensed facility. (1.1) A Category 3 license established on or after July 20, 2017, shall not be located by the board within 30 linear miles of another licensed facility. (2) Within five days of approving a license for an applicant with a proposed licensed facility consisting of land designated a subzone, an expansion subzone or an improvement subzone under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act for a slot machine license under this section, the board shall notify the Department of Community and Economic Development. The notice shall include a description of the land of the proposed licensed facility which is designated a subzone, an expansion subzone or an improvement subzone. Within five days of receiving the notice required by this paragraph, the Secretary of Community and Economic Development shall decertify the land of the proposed license facility as being a subzone, an expansion subzone or an improvement subzone. Upon decertification in accordance with this paragraph and notwithstanding Chapter 3 of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, a political subdivision may amend the ordinance, resolution or other required action which granted the exemptions, deductions, abatements or credits required by the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act to repeal the exemptions, deductions, abatements or credits for the land decertified. (c) Number of slot machines.--Notwithstanding the number of permissible slot machines as set forth in section 1210 (relating to number of slot machines), a Category 3 license granted under the provisions of this section shall entitle the licensed entity to operate no more than 500 slot machines at the licensed facility, provided, however, a Category 3 slot machine licensee holding a table game operation certificate shall be entitled to operate no more than 600 slot machines at its licensed facility. (c.1) Additional slot machines.-- (1) Upon submission by a Category 3 slot machine licensee of a petition to the board, in such form and manner as the board may require, the board may authorize the Category 3 slot machine licensee to increase the number of slot machines at the Category 3 slot machine licensee's licensed facility. (2) An increase in the number of slot machines by a Category 3 slot machine licensee under paragraph (1) may not exceed 250 additional slot machines, which shall be in addition to the number of permissible slot machines authorized under subsection (c). (d) Category 3 license fee.--The board shall impose a one-time Category 3 license fee to be paid by each successful applicant in the amount of $5,000,000 to be deposited in the State Gaming Fund. The provisions of section 1209(b), (c), (d) and (e) shall apply to a Category 3 licensee. (d.1) Fee for additional slot machines.--Notwithstanding subsection (d), no later than 60 days after the board approves a request for an increase in the number of slot machines submitted by a Category 3 slot machine licensee in accordance with subsection (c.1), the Category 3 slot machine licensee shall pay a one-time fee of $2,500,000 for deposit into the General Fund. (e) Definitions.--For the purpose of subsection (a), the following words and phrases shall have the meaning given to them in this subsection: "Amenities." Any ancillary activities, services or facilities in which a registered guest or the transient public, in return for non-de minimis consideration as defined by board regulation, may participate at a well-established resort hotel, including, but not limited to, sports and recreational activities and facilities such as a golf course or golf driving range, tennis courts or swimming pool; health spa; convention, meeting and banquet facilities; entertainment facilities; and restaurant facilities. "Patron of the amenities." Any individual who is a registered attendee of a convention, meeting or banquet event or a participant in a sport or recreational event or any other social, cultural or business event held at a resort hotel or who participates in one or more of the amenities provided to registered guests of the well-established resort hotel. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.; Jan. 7, 2010, P.L.1, No.1, eff. imd.; Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added subsecs. (a)(1.2), (c.1) and (d.1). 2010 Amendment. See section 19.2 of Act 1 in the appendix to this title for special provisions relating to additional applications for Category 3 licenses. Cross References. Section 1305 is referred to in sections 1103, 1208, 1209, 1210, 1305.1, 1313, 13F02 of this title.

4 Pa.C.S. § 1305.1 Category 4 slot machine license.

(a) Eligibility.--The following apply: (1) A slot machine licensee may submit a bid if: (i) the slot machine licensee's license and table game operation certificate are in good standing with the board; and (ii) the slot machine licensee agrees to locate a Category 4 licensed facility as provided under subsection (b). (2) A winning bidder of an auction under section 1305.2(a) (relating to conduct of auctions) shall be ineligible to participate in an auction until an auction is conducted under section 1305.2(b) and (b.1). (a.1) Municipal option.-- (1) Prior to the commencement of an auction under section 1305.2, each municipality shall have the option to prohibit the location of a Category 4 licensed facility within the municipality by delivering a resolution of the municipality's governing body to the board no later than December 31, 2017. No Category 4 licensed facility may be located in a municipality which has exercised its option under this paragraph. (2) A municipality that prohibits the location of a Category 4 licensed facility within the municipality under paragraph (1) may rescind that prohibition at any time by delivering a new resolution of the municipality's governing body to the board. A municipality that rescinds its prior prohibition according to this subsection may not subsequently prohibit the location of a Category 4 licensed facility in the municipality. (b) Location.--The following shall apply: (1) Ten Category 4 licensed facilities may be located in this Commonwealth. (2) A winning bidder's Category 4 location may not be within 25 linear miles of another Category 1, Category 2 or Category 3 licensed facility but may be within 25 linear miles of the winning bidder's licensed facility. (3) After a winning bidder selects a Category 4 location under section 1305.2(c)(9), the selected Category 4 location is reserved and another Category 4 location may not be located within that Category 4 location. (4) If the winning bidder applying for a Category 4 slot machine license proposes to place the licensed facility upon land designated a subzone, an expansion subzone or an improvement subzone under the act of October 6, 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, and the application is subsequently approved by the board, the winning bidder shall submit a statement waiving the exemptions, deductions, abatements or credits granted under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act. (5) Within five days of approving a Category 4 slot machine license for a proposed Category 4 licensed facility consisting of land designated a subzone, an expansion subzone or an improvement subzone under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act for a Category 4 slot machine license under this section, the board shall notify the Department of Community and Economic Development. The notice shall include a description of the land where the proposed Category 4 licensed facility would be situated which is designated a subzone, an expansion subzone or an improvement subzone. Within five days of receiving the notice required by this paragraph, the Secretary of Community and Economic Development shall decertify the land as being a subzone, an expansion subzone or an improvement subzone. Upon decertification in accordance with this paragraph and notwithstanding Chapter 3 of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, a political subdivision may amend an ordinance, resolution or other required action which granted the exemptions, deductions, abatements or credits required by the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act to repeal the exemptions, deductions, abatements or credits for the decertified land. (6) A Category 4 slot machine license may not be located in a county hosting a Category 3 licensed facility. (7) A Category 4 slot machine license may not be located in a sixth class county which is contiguous to a county that hosts a Category 2 licensed facility. (c) Conduct of gaming.--A Category 4 slot machine licensee shall have the authority to install and make slot machines available for play at a Category 4 licensed facility. The holder of a table game certificate that is a Category 4 slot machine licensee may install and make table games available for play at a Category 4 licensed facility. (d) Number of slot machines.--The following apply: (1) Subject to paragraphs (2) and (3), a Category 4 slot machine licensee may operate not fewer than 300 and not more than 750 slot machines at the Category 4 licensed facility. (2) A Category 1 or Category 2 slot machine licensee who is a Category 4 slot machine licensee may not operate slot machines above the authorized complement under section 1210 (relating to number of slot machines). (3) (i) A Category 3 slot machine licensee who is a Category 4 slot machine licensee may submit a petition to operate slot machines above the Category 3 authorized complement under section 1305 (relating to Category 3 slot machine license). (ii) No later than 60 days after the board approves a petition to operate slot machines above the Category 3 authorized complement in accordance with subparagraph (i), the Category 3 slot machine licensee shall pay a nonrefundable authorization fee in the amount of $10,000 per authorized additional slot machine. (iii) A qualified entity who is a Category 4 slot machine licensee shall submit to the board a petition to operate slot machines not to exceed the limit under paragraph (1). No later than 60 days after the board approves a petition to operate slot machines at a Category 4 licensed facility, the qualified entity must pay a nonrefundable authorization fee in the amount of $10,000 per authorized slot machine. (4) A slot machine licensee may not reduce the number of slot machines and table games in operation at a Category 1, Category 2 or Category 3 licensed facility, as of the effective date of this section, unless the board approves of a reduction and the reduction is not a result of the conduct of gaming at a Category 4 licensed facility. (e) License fee.-- (1) The license fee for a Category 4 slot machine license shall be determined pursuant to an auction under section 1305.2. (2) An additional license fee for a Category 4 slot machine license shall not be required. (3) The provisions of section 1209(c) (relating to slot machine license fee) shall not apply to a Category 4 license. (f) Temporary facilities.--The board, in its discretion and upon application or petition, may permit the use of a temporary facility within which slot machines and table games may be made available for play or operation at a Category 4 licensed facility, for a period not to exceed 18 months. (g) Pennsylvania State Police.--Notwithstanding section 1517 (relating to investigations and enforcement), the board may not require the Pennsylvania State Police to have an office located within a Category 4 licensed facility. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added section 1305.1. Cross References. Section 1305.1 is referred to in sections 1209, 1210, 1301, 13F02 of this title.

4 Pa.C.S. § 1305.2 Conduct of auctions.

(a) Initial auctions.-- (1) Beginning no later than January 15, 2018, and concluding by July 31, 2018, the board shall conduct initial auctions for the 10 available Category 4 slot machine licenses. (2) The board shall set the date, time and location of the initial auctions at least three weeks prior to the initial auction and make the auction information available on the board's publicly accessible Internet website. (b) Subsequent auctions.-- (1) If a winning bid is not awarded at an initial auction conducted under subsection (a), the board shall conduct subsequent auctions. (2) A Category 1 or Category 2 slot machine licensee that submitted a winning bid in an initial auction shall be eligible to submit a bid in all subsequent auctions. (3) Except as provided under subsection (c)(10)(ii), (11), (12) and (13), the board shall complete all subsequent auctions no later than August 31, 2018. (b.1) Additional auctions.--If a subsequent auction fails to generate any bids, the board, in its discretion, may determine if it is in the best interests of the Commonwealth whether to conduct additional auctions at which any Category 1, Category 2 or Category 3 slot machine licensee, or other qualified entity, may bid. If the board intends to conduct additional auctions, the board shall first establish criteria and procedures for the qualification of entities to bid and apply for a Category 4 license. (c) Auction procedures.--The following shall apply to the auctions conducted by the board: (1) Auctions shall be conducted using a competitive bidding process. (2) The board shall adopt procedures to prevent bid rigging and collusion among bidders and establish auction conditions, processes or procedures. The procedures shall not be subject to review under section 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law, sections 204(b) and 301(10) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, or the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (3) The board shall require each prospective bidder to submit a bond or letter of credit in the amount of the minimum bid under paragraph (5). (4) Each auction shall be conducted separately. (5) The minimum bid shall be $7,500,000. In no case may the board accept a bid that is less than $7,500,000. (6) If the auction does not result in a winning bid, the highest bidders shall have one hour to submit a final and best bid to the board at the same public meeting. If the submission of the final bids does not result in a winning bid, the highest bidders shall continue to submit final bids, in an amount not less than or equal to a prior bid submission, until a winning bid is received. (7) The winning bidder shall pay to the board the bid amount within two business days following the auction. Payment shall be by cashier's check, certified check or any other method acceptable to the board. (8) If the winning bidder does not pay the bid amount within the time period required under paragraph (7), the second highest bidder shall be awarded the right to select a Category 4 location and apply for the Category 4 slot machine license, so long as the second highest bidder's bid amount meets the requirements of paragraph (5). If the second highest bidder declines the award or is ineligible to win, the board shall conduct another auction. (9) Upon winning an auction, the winning bidder at the public meeting shall select the Category 4 location at which it intends to operate the Category 4 licensed facility. The board shall post the Category 4 location selection on its publicly accessible Internet website. The selected Category 4 location may not be selected by a subsequent winning bidder. (10) (i) The winning bidder shall submit an application for the Category 4 slot machine license within six months of the payment of the winning bid amount. The board may, in its discretion, extend this deadline for a period not to exceed two additional months. (ii) Failure of the winning bidder to submit an application within the time under subparagraph (i) shall result in forfeiture of the bidder's right to apply for the license and forfeiture of the winning bid amount. The board shall conduct another auction at a time determined by the board. (11) Issuance of a Category 4 slot machine license by the board to a winning bidder shall be contingent upon the bidder's ability to meet the requirements of this part. (12) In the event the board denies the application for the Category 4 slot machine license filed by the winning bidder, the winning bidder shall be entitled to a return of 75% of the winning bid amount the winning bidder submitted under paragraph (7). A refund under this paragraph shall be paid from the General Fund. The board shall conduct another auction at a time determined by the board. (13) If the board approves the application for the Category 4 slot machine license filed by the winning bidder and the applicant fails to open and operate the Category 4 licensed facility, the bid amount submitted under paragraph (7) is forfeited. The board shall conduct another auction at a time determined by the board. (d) Deposit of fees.--Notwithstanding section 1209 (relating to slot machine license fee), all Category 4 slot machine license auction fees and authorization fees shall be deposited into the General Fund. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added section 1305.2. Cross References. Section 1305.2 is referred to in sections 1103, 1202, 1208, 1305.1, 1307 of this title.

4 Pa.C.S. § 1306 Order of initial license issuance.

In order to facilitate the timely and orderly deployment of licensed gaming operations in this Commonwealth, the board shall adopt a schedule by which applicants for slot machine, manufacturer and supplier licenses shall be filed, considered and resolved in accordance with the provisions of this part. In so doing, the board shall consider, approve, condition or deny the approval of all filed applications for manufacturer and supplier licenses as soon as administratively possible and at least three months prior to the board's approval, conditioning or denial of the approval of any Category 1 license application pursuant to section 1315 (relating to conditional Category 1 licenses) or any other category of slot machine license pursuant to section 1301 (relating to authorized slot machine licenses). The board shall ensure that an adequate number of suppliers have been licensed pursuant to section 1301 to meet market demand. The board shall approve, approve with condition or deny all initial applications for conditional Category 1 licenses under section 1315 (relating to conditional Category 1 licenses) prior to considering applications for Category 1, Category 2 or Category 3 slot machine licenses. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.) Cross References. Section 1306 is referred to in sections 1317, 1317.1 of this title.

4 Pa.C.S. § 1307 Number of slot machine licenses.

(a) Category 1, Category 2 and Category 3 licenses.--The board may license no more than seven Category 1 licensed facilities and no more than five Category 2 licensed facilities, as it may deem appropriate, as long as two, and not more, Category 2 licensed facilities are located by the board within the city of the first class and that one, and not more, Category 2 licensed facility is located by the board within the city of the second class. The board may at its discretion increase the total number of Category 2 licensed facilities permitted to be licensed by the board by an amount not to exceed the total number of Category 1 licenses not applied for within five years following the effective date of this part. Except as permitted by section 1328 (relating to change in ownership or control of slot machine licensee), any Category 1 license may be reissued by the board at its discretion as a Category 2 license if an application for issuance of such license has not been made to the board. The board may license no more than two Category 3 licensed facilities. (b) Category 4 licenses.--The board may license no more than 10 Category 4 licensed facilities. The board shall conduct auctions in accordance with section 1305.2 (relating to conduct of auctions). (Jan. 7, 2010, P.L.1, No.1, eff. imd.; Oct. 30, 2017, P.L.419, No.42, eff. imd.) Cross References. Section 1307 is referred to in section 1209 of this title.

4 Pa.C.S. § 1308 Applications for license or permit.

(a) Applications.--An application for a license or permit to be issued by the board shall be submitted on a form and in a manner as shall be required by the board. In reviewing applications, the board shall confirm that all the applicable license or permit fees have been paid in accordance with this part. (a.1) Submission of information.--An applicant for a license or permit under this part shall disclose in the application all arrests of the applicant and all citations issued to the applicant for nontraffic summary offenses. The information shall include: (1) A brief description of the circumstances surrounding the arrest or issuance of the citation. (2) The specific offense charged. (3) The ultimate disposition of the charge, including the details of any dismissal, plea bargain, conviction, sentence, pardon, expungement or order of Accelerated Rehabilitative Disposition. No applicant shall be required to provide documentation relating to any summary offense. Failure of the bureau to recover records of a summary offense shall not be grounds for denying an application. (b) Completeness of applications.--The board shall not consider an incomplete application and shall notify the applicant in writing if an application is incomplete. An application shall be considered incomplete if it does not include all applicable fees and all information and accompanying documentation required by the board, including, but not limited to, a current tax lien certificate issued by the department at the time of filing the application. Any unpaid taxes identified on the tax lien certificate shall be paid before the application is considered complete. A notification of incompleteness shall state the deficiencies in the application that must be corrected prior to consideration of the merits of the application. (c) Adverse litigation.--Notwithstanding any law to the contrary, the board and the commissions shall not consider any application for a license if the applicant or any person affiliated with or directly related to the applicant is a party in any ongoing civil proceeding in which the party is seeking to overturn or otherwise challenge a decision or order of the board or commissions pertaining to the approval, denial or conditioning of a license to conduct thoroughbred or harness horse race meetings respectively with pari-mutuel wagering or to operate slot machines. This subsection shall not be interpreted to affect the rights of applicants to seek judicial enforcement of mandatory obligations of the board as may be required by this part. (Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 added subsec. (a.1). Cross References. Section 1308 is referred to in sections 1206, 1310, 1604 of this title.

4 Pa.C.S. § 1309 Slot machine license application.

(a) General requirements.--In addition to any other information required under this part or as may be required by the board, the application for any category of slot machine license shall include at a minimum: (1) The name, address and photograph of the applicant and of all directors and owners and key employees and their positions within the corporation or organization, as well as any additional financial information required by the board. (2) The proposed location of the slot machine areas, if known. (3) The number of slot machines requested. (4) A current tax lien certificate issued by the department. (5) In those instances where additional slot machines are being requested, the justification and explanation for the number and proposed location of the slot machine areas within the confines of the licensed facility. (6) The current status of the horse or harness racing license issued pursuant to the Race Horse Industry Reform Act, if any. (7) The details of any gaming, slot machine or casino license applied for, granted to or denied to the applicant by other jurisdictions where such form of gaming is legal, and the consent for the board to acquire copies of applications submitted or licenses issued in connection therewith. (8) The details of any loans obtained from a financial institution or not obtained from a financial institution. (9) The consent to conduct a background investigation by the board, the scope of which shall be determined by the board in its discretion consistent with the provisions of this part, and a release signed by all persons subject to the investigation of all information required to complete the investigation. (10) Any other information determined to be appropriate by the board. (a.1) Table games and interactive gaming information.-- (1) An applicant for a slot machine license may submit with its application all information required under Chapter 13A (relating to table games) and request that the board consider its application for a slot machine license and a table game operation certificate concurrently. All fees for a table game operation certificate shall be paid by the applicant in accordance with section 13A61 (relating to table game authorization fee). (2) The board shall permit any applicant for a slot machine license that has an application pending before the board on the effective date of this subsection to supplement its application with all information required under Chapter 13A and to request that the board consider its application for a slot machine license and a table game operation certificate concurrently. All fees for a table game operation certificate shall be paid by the applicant in accordance with section 13A61. (3) The board may permit an applicant for a slot machine license that has an application under paragraph (1) or (2) pending before the board to supplement its application with all information required under Chapter 13B (relating to interactive gaming) and to request that the board consider its application for a slot machine license, a table game operation certificate and an interactive gaming certificate concurrently. All fees for an interactive gaming certificate shall be paid by the applicant in accordance with the requirements of this part. (b) Refusal to cooperate.--Any refusal to provide the information required under this section or to consent to a background investigation shall result in the immediate denial of a license or permit. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.; Jan. 7, 2010, P.L.1, No.1, eff. imd.; Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 amended the heading of subsec. (a.1) and added subsec. (a.1)(3). 2010 Amendment. Act 1 added subsec. (a.1). 2006 Amendment. Act 135 amended subsec. (a)(1). References in Text. The act of December 17, 1981, P.L.435, No.135, known as the Race Horse Industry Reform Act, referred to in subsec. (a)(6), was repealed by the act of February 23, 2016, P.L.15, No.7.

4 Pa.C.S. § 1310 Slot machine license application character requirements.

(a) Application.-- (1) Every application for a slot machine license shall include such information, documentation and assurances as may be required to establish by clear and convincing evidence the applicant's suitability, including good character, honesty and integrity. Information shall include, without limitation, information pertaining to family, habits, character, reputation, criminal history background, business activities, financial affairs and business, professional and personal associates, covering at least the ten-year period immediately preceding the filing date of the application. (2) Notwithstanding 18 Pa.C.S. § 9124(b) (relating to use of records by licensing agencies), in addition to the information submitted under section 1308(a.1) (relating to applications for license or permit), a conviction that has been expunged or overturned or for which a person has been pardoned or an order of Accelerated Rehabilitative Disposition has been issued shall be included with an application and considered by the board as part of the review of the applicant's suitability under paragraph (1). (b) Civil judgments and law enforcement agency information.--Each applicant shall notify the board of any civil judgments obtained against the applicant pertaining to antitrust or security regulation laws of the Federal Government, this Commonwealth or any other state, jurisdiction, province or country. In addition, each applicant shall produce a letter of reference from law enforcement agencies having jurisdiction in the applicant's place of residence and principal place of business, which letter of reference shall indicate that the law enforcement agencies do not have any pertinent information concerning the applicant or, if the law enforcement agency does have information pertaining to the applicant, shall specify the nature and content of that information. If no letters are received within 30 days of the request, the applicant may submit a statement under oath which is subject to the penalty for false swearing under 18 Pa.C.S. § 4903 (relating to false swearing) that the applicant is or was during the period the activities were conducted in good standing with the gaming or casino enforcement or control agency. (c) Gaming or casino enforcement agency information.--If the applicant has held a gaming license in a jurisdiction where gaming activities are permitted, the applicant shall produce a letter of reference from the gaming or casino enforcement or control agency which shall specify the experiences of that agency with the applicant, the applicant's associates and the applicant's gaming operation. If no letters are received within 30 days of the request, the applicant may submit a statement under oath which is subject to the penalty for false swearing under 18 Pa.C.S. § 4903 that the applicant is or was during the period the activities were conducted in good standing with the gaming or casino enforcement or control agency. (d) Agency records.--Each applicant for a slot machine license, principal license or key employee license shall be required to apply to each Federal agency deemed appropriate by the board or bureau for agency records under the Freedom of Information Act (Public Law 89-554, 5 U.S.C. § 552) pertaining to the applicant and provide the bureau with the complete record received from the Federal agency. The board may issue a license to the applicant prior to the receipt of information under this subsection. (Jan. 7, 2010, P.L.1, No.1, eff. imd.) Cross References. Section 1310 is referred to in sections 1206, 1311, 1312 of this title.

4 Pa.C.S. § 1311 Additional slot machine license requirements.

(a) Additional eligibility requirements.--In order to be eligible for a slot machine license under this part, the principals and key employees of the applicant shall obtain a license to meet the character requirements of section 1310 (relating to slot machine license application character requirements) or other eligibility requirements established by the board. (b) Classification system.--The board shall develop a classification system for other agents, employees or persons who directly or indirectly hold or are deemed to be holding debt or equity securities or other financial interest in the applicant and for other persons which the board considers appropriate for review under section 1310. (c) Related entities.-- (1) Except as provided in paragraph (2), no person shall be eligible to receive a slot machine license unless the principals and key employees of each intermediary, subsidiary or holding company of the person meet the requirements of subsection (a). (2) The board may require that lenders and underwriters of intermediaries, subsidiaries or holding companies of a slot machine license applicant meet the requirements of subsection (a) if the board determines that the suitability of a lender or underwriter is at issue and is necessary to consider a pending application for a slot machine license. (d) Revocable privilege.--The issuance or renewal of a license, permit or other authorization by the board under this section shall be a revocable privilege. (e) Waiver for publicly traded corporations.--The board may waive the requirements of subsection (a) for a person directly or indirectly holding ownership of securities in a publicly traded corporation if the board determines that the holder of the securities is not significantly involved in the activities of the corporation and does not have the ability to control the corporation or elect one or more directors thereof. (f) Waiver for subsidiaries.--If the applicant is a subsidiary, the board may waive the requirements of subsection (a) for a holding company or intermediary as follows: (1) If the applicant is a publicly traded corporation, the board may issue a waiver under this subsection if it determines that the principal or key employee does not have the ability to control, have a controlling interest in or elect one or more directors of the holding company or intermediary and is not actively involved in the activities of the applicant. (2) If the applicant is a noncorporate organization, the board may issue a waiver under this subsection for a person who directly or indirectly holds a beneficial or ownership interest in the applicant if it determines that the person does not have the ability to control the applicant. (g) Ongoing duty.--A person applying for a license, permit or other authorization under this part shall have the continuing duty to provide information required by the board or the bureau and to cooperate in any inquiry or investigation. (h) Criminal history record check.--The board shall conduct a criminal history record check on any person for whom a waiver is granted under this section. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

4 Pa.C.S. § 1311.1 Licensing of principals.

(a) License required.--All principals shall obtain a principal license from the board. (b) Application.--A principal license application shall be in a form prescribed by the board and shall include the following: (1) Verification of status as a principal from a slot machine licensee, manufacturer licensee or supplier licensee. (2) A description of responsibilities as a principal. (3) All releases necessary to obtain information from governmental agencies, employers and other organizations. (4) Fingerprints, which shall be submitted to the Pennsylvania State Police. (5) A photograph that meets the standards of the Commonwealth Photo Imaging Network. (6) Details relating to a similar license, permit or other authorization obtained in another jurisdiction. (7) Any additional information required by the board. (c) Issuance.--Following review of the application and the background investigation, the board may issue a principal license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a principal. (d) Nontransferability.--A license issued under this section shall be nontransferable. (e) Principals.--An individual who receives a principal license need not obtain a key employee license. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.) 2006 Amendment. Act 135 added section 1311.1.

4 Pa.C.S. § 1311.2 Licensing of key employees.

(a) License required.--All key employees shall obtain a key employee license from the board. (b) Application.--A key employee license application shall be in a form prescribed by the board and shall include the following: (1) Verification of status as a key employee from a slot machine licensee, manufacturer licensee or supplier licensee. (2) A description of employment responsibilities. (3) All releases necessary to obtain information from governmental agencies, employers and other organizations. (4) Fingerprints, which shall be submitted to the Pennsylvania State Police. (5) A photograph that meets the standards of the Commonwealth Photo Imaging Network. (6) Details relating to a similar license, permit or other authorization obtained in another jurisdiction. (7) Any additional information required by the board. (c) Issuance.--Following review of the application and the background investigation, the board may issue a key employee license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee. (d) Nontransferability.--A license issued under this section shall be nontransferable. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.) 2006 Amendment. Act 135 added section 1311.2.

4 Pa.C.S. § 1312 Divestiture of disqualifying applicant.

In the event that any slot machine license application is not approved by the board based on a finding that an individual who is a principal or has an interest in the person applying for the license does not meet the character requirements of section 1310 (relating to slot machine license application character requirements) or any of the eligibility requirements under this part, or a person who purchases a controlling interest in a licensed gaming entity in violation of section 1328 (relating to change in ownership or control of slot machine licensee), the board may afford the individual the opportunity to completely divest his interest in the person, its affiliate, intermediary, subsidiary or holding company seeking the license and, after such divestiture, reconsider the person's or applicant's suitability for licensure in an expedited proceeding and may, after such proceeding, issue the person or applicant a slot machine license. The board shall approve the terms and conditions of any divestiture under this section. Under no circumstances shall any divestiture be approved by the board if the compensation for the divested interest exceeds the cost of the interest.

4 Pa.C.S. § 1313 Slot machine license application financial fitness requirements.

(a) Applicant financial information.--The board shall require each applicant for a slot machine license to produce the information, documentation and assurances concerning financial background and resources as the board deems necessary to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant, its affiliate, intermediary, subsidiary or holding company, including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers. In addition, each applicant shall in writing authorize the examination of all bank accounts and records as may be deemed necessary by the board. (b) Financial backer information.--The board shall require each applicant for a slot machine license to produce the information, documentation and assurances as may be necessary to establish by clear and convincing evidence the integrity of all financial backers, investors, mortgagees, bondholders and holders of indentures, notes or other evidences of indebtedness, either in effect or proposed. Any such banking or lending institution and institutional investors may be waived from the qualification requirements. A banking or lending institution or institutional investor shall, however, produce for the board upon request any document or information which bears any relation to the proposal submitted by the applicant or applicants. The integrity of the financial sources shall be judged upon the same standards as the applicant. Any such person or entity shall produce for the board upon request any document or information which bears any relation to the application. In addition, the applicant shall produce whatever information, documentation or assurances the board requires to establish by clear and convincing evidence the adequacy of financial resources. (c) Applicant's ability to pay license fee.--The board shall require each applicant for a Category 1 or 2 slot machine license at the time of application to post a letter of credit or bond in the amount of $50,000,000 to demonstrate the financial ability to pay the slot machine license fee as required in section 1209 (relating to slot machine license fee) if issued a slot machine license by the board. Each applicant for a Category 3 slot machine license at the time of application shall be required to post a letter of credit or bond in the amount of $5,000,000 to demonstrate the financial ability to pay the Category 3 slot machine license fee as required in section 1305 (relating to Category 3 slot machine license) if issued a slot machine license by the board. (d) Applicant's business experience.--The board shall require each applicant for a slot machine license to produce the information, documentation and assurances as the board may require to establish by clear and convincing evidence that the applicant has sufficient business ability and experience to create and maintain a successful, efficient operation. Applicants shall produce the names of all proposed key employees and a description of their respective or proposed responsibilities as they become known. (e) Applicant's operational viability.--In assessing the financial viability of the proposed licensed facility, the board shall make a finding, after review of the application, that the applicant is likely to maintain a financially successful, viable and efficient business operation and will likely be able to maintain a steady level of growth of revenue to the Commonwealth pursuant to section 1403 (relating to establishment of State Gaming Fund and net slot machine revenue distribution). Notwithstanding any provision of this part to the contrary, an applicant that includes a commitment or promise to pay a slot machine license fee in excess of the amount provided in section 1209 or a distribution of terminal revenue in excess of the amounts provided in sections 1403, 1405 (relating to Pennsylvania Race Horse Development Trust Fund) and 1407 (relating to Pennsylvania Gaming Economic Development and Tourism Fund) shall not be deemed a financially successful, viable or efficient business operation and shall not be approved for a slot machine license. (f) Additional information.--In addition to other information required by this part, a person applying for a slot machine license shall provide the following information: (1) The organization, financial structure and nature of all businesses operated by the person, including any affiliate, intermediary, subsidiary or holding companies, the names and personal employment and criminal histories of all officers, directors and key employees of the corporation; the names of all holding, intermediary, affiliate and subsidiary companies of the corporation; and the organization, financial structure and nature of all businesses operated by such holding, intermediary and subsidiary companies as the board may require, including names and personal employment and criminal histories of such officers, directors and principal employees of such corporations and companies as the board may require. (2) The extent of securities held in the corporation by all officers, directors and underwriters and their remuneration in the form of salary, wages, fees or otherwise. (3) Copies of all management and service contracts. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.; Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 amended subsec. (e).

4 Pa.C.S. § 1314 Alternative Category 1 licensing standards.

(a) Determination.--The board may determine whether the licensing standards of another jurisdiction within the United States or Canada in which an applicant, its affiliate, intermediary, subsidiary or holding company for a Category 1 slot machine license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this part. If the board makes that determination, it may issue a slot machine license to an applicant who holds a slot machine license in such other jurisdiction after conducting an evaluation of the information relating to the applicant from such other jurisdictions, as updated by the board, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the board may incorporate such information in whole or in part into its evaluation of the applicant. (b) Abbreviated process.--In the event an applicant for a slot machine license is licensed in another jurisdiction, the board may determine to use an alternate process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the licensee, to such an applicant. Nothing in this section shall be construed to waive any fees associated with obtaining a license through the normal application process.

4 Pa.C.S. § 1315 Conditional Category 1 licenses.

(a) Issuance.--Notwithstanding any provisions of this part to the contrary, upon a finding that it is in the public interest, the board may issue a conditional slot machine license to a person who qualifies as a Category 1 license applicant upon payment of the fee pursuant to section 1209 (relating to slot machine license fee). This license may be issued after the completion of a background investigation of the applicant and each key employee and prior to full compliance by the applicant with section 1325 (relating to license or permit issuance). (b) Suitability; financial capability.--An applicant shall provide the board with satisfactory evidence of suitability and financial capability of the applicant to be a slot machine licensee prior to the board granting the conditional license. (c) Complete application.--No later than upon issuance of a conditional license, the applicant shall submit a complete application for a Category 1 license pursuant to section 1302 (relating to Category 1 slot machine license) as set forth by this part. (d) Expiration.--If the holder of a conditional license does not receive board approval for the issuance of a Category 1 slot machine license under the standards set forth in this part within 18 months from the time set by the board pursuant to section 1301 (relating to authorized slot machine licenses) at which all applications are to be filed and deemed complete, the conditional license shall expire. Failure to meet the requirements of this part for licensure shall cause immediate forfeiture of the conditional slot machine license and revocation of authorization to operate slot machines at the licensed facility. (e) Return of fee.--In the event of the expiration of a conditional license or the denial of an application for a slot machine license pursuant to section 1302, the applicant shall be entitled to a return of 85% of the conditional slot machine license fee it submitted with its application. Cross References. Section 1315 is referred to in sections 1301, 1306 of this title.

4 Pa.C.S. § 1316 Bond for issuance of slot machine license.

Before any category of slot machine license is issued, the licensee shall post a bond in an amount not less than the sum of $1,000,000, as set by the board, payable to the Commonwealth. The bond shall be used to guarantee that the slot machine licensee faithfully makes the payments, keeps books and records, makes reports and conducts operations in conformity with this part and rules, regulations and orders promulgated by the board. The bond shall not be canceled by a surety on less than 30 days' notice in writing to the board. If a bond is canceled and the slot machine licensee fails to file a new bond with the board in the required amount on or before the effective date of cancellation, the licensee's license shall be revoked or suspended. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.

4 Pa.C.S. § 1317 Supplier licenses.

(a) Application.--A manufacturer that elects to contract with a supplier under section 1317.1(d.1) (relating to manufacturer licenses) shall ensure that the supplier is appropriately licensed under this section. A person seeking to provide slot machines, table game devices or associated equipment, interactive gaming devices or associated equipment or multi-use computing devices to a slot machine licensee, an interactive gaming certificate holder or an interactive gaming operator within this Commonwealth through a contract with a licensed manufacturer shall apply to the board for the appropriate supplier license. (b) Requirements.--An application for a supplier license shall be on the form required by the board, accompanied by the application fee, and shall include all of the following: (1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies; the principals and key employees of each business; and a list of employees and their positions within each business, as well as any financial information required by the board. (1.1) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not slot machine licensees. (1.2) Proof that the applicant has or will establish a principal place of business in this Commonwealth. A supplier licensee shall maintain its principal place of business in this Commonwealth to remain eligible for licensure. (2) The consent to a background investigation of the applicant, its principals and key employees or other persons required by the board and a release to obtain any and all information necessary for the completion of the background investigation. (3) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted and consent for the board to acquire copies of applications submitted or licenses issued in connection therewith. (4) The type of goods and services to be supplied and whether those goods and services will be provided through purchase, lease, contract or otherwise. (5) Any other information determined by the board to be appropriate. (c) Review and approval.--Upon being satisfied that the requirements of subsection (b) have been met, the board may approve the application and issue the applicant a supplier license consistent with all of the following: (1) The license shall be issued for a period of five years and shall be renewed in accordance with subsection (d). Nothing in this paragraph shall relieve a licensee of the affirmative duty to notify the board of any changes relating to the status of its license or to any information contained in the application materials on file with the board. (2) The license shall be nontransferable. (3) Any other condition established by the board. (c.1) Abbreviated process.--In the event an applicant for a supplier license to supply table game devices or associated equipment used in connection with table games is licensed by the board under this section to supply slot machines or associated equipment used in connection with slot machines, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license to supply table game devices or associated equipment used in connection with table games, including financial viability of the applicant. Nothing in this section shall be construed to waive any fees associated with obtaining a license through the normal application process. The board may only use the abbreviated process if all of the following apply: (1) The supplier license was issued by the board within a 36-month period immediately preceding the date the supplier licensee files an initial application to supply table game devices or associated equipment. (2) The person to whom the supplier license was issued affirms there has been no material change in circumstances relating to the license. (3) The board determines, in its sole discretion, that there has been no material change in circumstances relating to the licensee that necessitates that the abbreviated process not be used. (c.2) Abbreviated process for supplier.-- (1) Notwithstanding subsection (c.1)(1) or any regulations of the board to the contrary, the board may extend the use of the abbreviated process authorized under subsection (c.1) to an applicant for a supplier license to supply slot machines used in a multistate wide-area progressive slot machine system, skill slot machines, hybrid slot machines and devices or associated equipment used in connection with multistate wide-area progressive slot machine systems, skill slot machines or hybrid slot machines, interactive gaming devices or associated equipment used in connection with interactive gaming, including multi-use computing devices, if the applicant holds a valid supplier license issued by the board to supply slot machines or associated equipment or table games or table game devices or associated equipment. The requirements of subsection (c.1)(2) and (3) shall apply to this subsection. (2) An applicant for a supplier's license to supply slot machines used in a multistate wide-area progressive systems, skill slot machines or hybrid slot machines or associated equipment or interactive gaming devices or associated equipment shall be subject to the applicable provisions of this part. (d) Renewal.-- (1) Six months prior to expiration of a supplier license, the supplier licensee seeking renewal of its license shall submit a renewal application accompanied by the renewal fee to the board. (2) If the renewal application satisfies the requirements of subsection (b), the board may renew the licensee's supplier license. (3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the supplier license, the supplier license shall continue in effect until acted upon by the board. (e) Prohibitions.--No limitation shall be placed on the number of supplier licenses issued or the time period to submit applications for licensure except as required to comply with section 1306 (relating to order of initial license issuance). (Nov. 1, 2006, P.L.1243, No.135, eff. imd; Jan. 7, 2010, P.L.1, No.1, eff. imd; Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 amended subsecs. (a), (c) and (d) and added subsec. (c.2). 2010 Amendment. Act 1 amended subsecs. (a) and (c)(1) and added subsec. (c.1). Cross References. Section 1317 is referred to in sections 1208, 1317.1, 1320, 13A23.1, 3507, 3513 of this title.

4 Pa.C.S. § 1317.1 Manufacturer licenses.

(a) Application.--A person seeking to manufacture slot machines, table game devices and associated equipment or interactive gaming devices and associated equipment for use in this Commonwealth shall apply to the board for a manufacturer license. (b) Requirements.--An application for a manufacturer license shall be on the form required by the board, accompanied by the application fee, and shall include all of the following: (1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies; the principals and key employees of each business; and a list of employees and their positions within each business, as well as any financial information required by the board. (2) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not slot machine licensees. (3) The consent to a background investigation of the applicant, its principals and key employees or other persons required by the board and a release to obtain any and all information necessary for the completion of the background investigation. (4) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted and consent for the board to acquire copies of applications submitted or licenses issued in connection therewith. (5) The type of slot machines, table game devices or associated equipment or interactive gaming devices or associated equipment to be manufactured or repaired. (6) Any other information determined by the board to be appropriate. (c) Review and approval.--Upon being satisfied that the requirements of subsection (b) have been met, the board may approve the application and grant the applicant a manufacturer license consistent with all of the following: (1) The license shall be issued for a period of five years and shall be renewed in accordance with subsection (d). Nothing in this paragraph shall relieve the licensee of the affirmative duty to notify the board of any changes relating to the status of its license or to any other information contained in application materials on file with the board. (2) The license shall be nontransferable. (3) Any other condition established by the board. (c.1) Abbreviated process.--In the event an applicant for a manufacturer license to manufacture table game devices or associated equipment used in connection with table games is licensed by the board under this section to manufacture slot machines or associated equipment used in connection with slot machines, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license to manufacture table game devices or associated equipment used in connection with table games, including financial viability of the applicant. Nothing in this section shall be construed to waive any fees associated with obtaining a license, certificate or permit through the normal application process. The board may only use the abbreviated process if all of the following apply: (1) The manufacturer license was issued by the board within a 36-month period immediately preceding the date the manufacturer licensee files an application to manufacture table game devices or associated equipment. (2) The person to whom the manufacturer license was issued affirms there has been no material change in circumstances relating to the license. (3) The board determines, in its sole discretion, that there has been no material change in circumstances relating to the licensee that necessitates that the abbreviated process not be used. (c.2) Abbreviated process for manufacturer.-- (1) Notwithstanding subsection (c.1)(1) or any regulations of the board to the contrary, the board may extend the use of the abbreviated process authorized under subsection (c.1) to an applicant for a manufacturer license to manufacture slot machines used in multistate wide-area progressive slot machine systems, skill slot machines, hybrid slot machines or associated equipment used in connection with multistate wide-area progressive slot machine systems, skill slot machines or hybrid slot machines or interactive gaming devices or associated equipment used in connection with interactive gaming, if the applicant holds a valid manufacturer license issued by the board to manufacture slot machines or associated equipment or table games or table game devices or associated equipment. The requirements of subsection (c.1) (2) and (3) shall apply to this subsection. (2) An applicant for a manufacturer license to manufacture slot machines used in a multistate wide-area progressive system, skill or hybrid slot machines or associated equipment or interactive gaming devices or associated equipment shall be subject to the applicable provisions of this part. (d) Renewal.-- (1) Six months prior to expiration of a manufacturer license, the manufacturer licensee seeking renewal of its license shall submit a renewal application accompanied by the renewal fee to the board. (2) If the renewal application satisfies the requirements of subsection (b), the board may renew the licensee's manufacturer license. (3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the manufacturer license, the manufacturer license shall continue in effect until acted upon by the board. (d.1) Authority.--The following shall apply to a licensed manufacturer: (1) A manufacturer or its designee, as licensed by the board, may supply or repair any slot machine, table game device or associated equipment or interactive gaming device or associated equipment manufactured by the manufacturer, provided the manufacturer holds the appropriate manufacturer license. (2) A manufacturer of slot machines may contract with a supplier under section 1317 (relating to supplier licenses) to provide slot machines or associated equipment to a slot machine licensee within this Commonwealth, provided the supplier is licensed to supply slot machines or associated equipment used in connection with slot machines. (3) A manufacturer may contract with a supplier under section 1317 to provide table game devices or associated equipment to a certificate holder, provided the supplier is licensed to supply table game devices or associated equipment used in connection with table games. (4) A manufacturer may contract with a supplier under section 1317 to provide slot machines used in a multistate wide-area progressive system, skill slot machines or hybrid slot machines or associated equipment, interactive gaming devices or associated equipment, provided that the manufacturer is licensed to manufacture slot machines used in a multistate wide-area progressive slot machine system, skill slot machines or hybrid slot machines or associated equipment or interactive gaming devices or associated equipment used in connection with interactive games. (e) Prohibitions.-- (1) No person may manufacture slot machines, table game devices or associated equipment or interactive gaming devices or associated equipment for use within this Commonwealth unless the person has been issued the appropriate manufacturer license under this section. (2) Except as permitted in section 13A23.1 (relating to training equipment), no person may use slot machines, table game devices or associated equipment, authorized interactive games or interactive gaming devices or associated equipment unless the slot machines, table game devices or associated equipment, interactive games or interactive gaming devices or associated equipment were manufactured by a person that has been issued the appropriate manufacturer license under this section. (3) No person issued a license under this section shall apply for or be issued a license under section 1317. (4) No limitation shall be placed on the number of manufacturer licenses issued or the time period to submit applications for licensure, except as required to comply with section 1306 (relating to order of initial license issuance). (Nov. 1, 2006, P.L.1243, No.135, eff. imd.; Jan. 7, 2010, P.L.1, No.1, eff. imd.; Oct. 30, 2017, P.L.419, No.42, eff. imd.) Cross References. Section 1317.1 is referred to in sections 1208, 1317, 13A23.1, 13A41, 13C16, 3508, 3512 of this title.

4 Pa.C.S. § 1317.2 Gaming service provider.

(a) Development of classification system.--The board shall develop a classification system governing the certification, registration and regulation of gaming service providers and individuals and entities associated with them. The classification system shall be based upon the following: (1) The monetary value or amount of business conducted or expected to be conducted by the gaming service provider with an applicant for a slot machine license or a slot machine licensee in any consecutive 12-month period. (2) Whether the employees of the gaming service provider will have access to the gaming floor or any gaming-related restricted area of a licensed facility. (3) The board's analysis of the goods or services provided or to be provided by the gaming service provider. (b) Authority to exempt.--The board may exempt any person or type of business from the requirements of this section if the board determines: (1) the person or type of business is regulated by an agency of the Federal Government, an agency of the Commonwealth or the Pennsylvania Supreme Court; or (2) the regulation of the person or type of business is determined not to be necessary in order to protect the public interest or the integrity of gaming. (c) Duties of gaming service providers.--Each gaming service provider shall have a continuing duty to: (1) Provide all information, documentation and assurances as the board may require. (2) Cooperate with the board in investigations, hearings and enforcement and disciplinary actions. (3) Comply with all conditions, restrictions, requirements, orders and rulings of the board in accordance with this part. (4) Report any change in circumstances that may render the gaming service provider ineligible, unqualified or unsuitable for continued registration or certification. (d) Requirement for permit.--The board may require employees of a gaming service provider to obtain a permit or other authorization if, after an analysis of duties, responsibilities and functions, the board determines that a permit or other authorization is necessary to protect the integrity of gaming. (e) Interim authorization.--The board or a designated employee of the board may permit a gaming service provider applicant to engage in business with an applicant for a slot machine license or a slot machine licensee prior to approval of the gaming service provider application if the following criteria have been satisfied: (1) A completed application has been filed with the board by the gaming service provider. (2) The slot machine applicant or slot machine licensee contracting or doing business with the gaming service provider certifies that it has performed due diligence on the gaming service provider and believes that the applicant meets the qualification to be a gaming service provider pursuant to this section. (3) The gaming service provider applicant agrees in writing that the grant of interim authorization to conduct business prior to board approval of its application does not create a right to continue to engage in business if the board determines that the applicant is not suitable or continued authorization is not in the public interest. (f) Construction.--Nothing in this section shall be construed to prohibit the board from rescinding a grant of interim authorization if, at any time, the suitability of the person subject to interim authorization is at issue or if the person fails to cooperate with the board, the bureau or an agent of the board or bureau. (g) Gaming service provider lists.--The board shall: (1) Develop and maintain a list of approved gaming service providers who are authorized to provide goods or services whether under a grant of interim or continued authorization. (2) Develop and maintain a list of prohibited gaming service providers. An applicant for a slot machine license or a slot machine licensee may not enter into an agreement or engage in business with a gaming service provider listed on the prohibited gaming service provider list. (h) Emergency authorization.--A slot machine licensee may utilize a gaming service provider that has not been approved by the board when a threat to public health, welfare or safety exists or circumstances outside the control of the slot machine licensee require immediate action to mitigate damage or loss to the licensee's licensed facility or to the Commonwealth. The board shall promulgate regulations to govern the use of gaming service providers under emergency circumstances. The regulations shall include a requirement that the slot machine licensee contact the board immediately upon utilizing a gaming service provider that has not been approved by the board. (i) Criminal history record information.--If the classification system developed by the board in accordance with subsection (a) requires a gaming service provider or an individual or entity associated with the gaming service provider to submit to or provide the bureau with criminal history record information under 18 Pa.C.S. Ch. 91 (relating to criminal history record information), the bureau shall notify a slot machine licensee that submitted a certification under subsection (e)(2) whether the applicant has been convicted of a felony or misdemeanor gambling offense. (Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 added section 1317.2. Cross References. Section 1317.2 is referred to in section 342 of this title.

4 Pa.C.S. § 1317.3 Nongaming service provider.

(a) Notification required.-- (1) A slot machine licensee or applicant for a slot machine license that contracts with or otherwise engages in business with a nongaming service provider shall provide notification to the board prior to: (i) the nongaming service provider's provision of goods or services at the slot machine licensee's licensed facility; or (ii) the provision of goods or services for use in the operation of the slot machine licensee's licensed facility. (2) Notification under this section shall be on a form and in a manner as determined by the board. The board may impose a fee, not to exceed $100, in connection with the notification. (b) Contents of notification.--Notification under this section shall include: (1) The name and business address of the nongaming service provider. (2) A description of the type or nature of the goods or services to be provided. (3) An affirmation from the slot machine licensee or applicant for a slot machine license that the goods or services to be provided by the nongaming service provider will not require access to the gaming floor or a gaming-related restricted area. (4) An affirmation from the slot machine licensee or applicant for a slot machine license certifying that the licensee or applicant has performed due diligence regarding the nongaming service provider and believes that neither the nongaming service provider nor its employees will adversely affect the public interest or integrity of gaming. (5) Any other information that the board deems necessary. (c) Duration of notification.--Subject to subsection (d)(5), the nongaming service provider notification required under subsection (a) shall be valid for five years. (d) Conditions.--A slot machine licensee or applicant for a slot machine license that contracts or otherwise engages in business with a nongaming service provider shall be subject to the following conditions: (1) The nongaming service provider and its employees shall only provide the goods and services described in the notification under this section. (2) The slot machine licensee or applicant for a slot machine license shall notify the board of any material change in the information provided in the notification under this section. No fee shall be required for a subsequent change during the time for which the notification remains valid under subsection (c). (3) The slot machine licensee or applicant for a slot machine license shall ensure that employees of the nongaming service provider do not enter the gaming floor or a gaming-related restricted area while providing the goods or services described in subsection (b)(2). (4) The slot machine licensee or applicant for a slot machine license shall report to the board an employee of a nongaming service provider that does any of the following: (i) Enters the gaming floor or a gaming-related restricted area of the licensed facility. (ii) Commits an act that adversely affects the public interest or integrity of gaming. (5) The board may prohibit a nongaming service provider or any of its employees from providing goods or services to a slot machine licensee or applicant for a slot machine license at a licensed facility upon a finding by the board that the prohibition is necessary to protect the public interest or integrity of gaming. (e) Authority to exempt.--The board may exempt a slot machine licensee or applicant for a slot machine license from the notification requirements of this section if the board determines any of the following: (1) The nongaming service provider or the type or nature of the nongaming service provider's business is regulated by an agency of the Federal Government, an agency of the Commonwealth or the Pennsylvania Supreme Court. (2) Notification is not necessary to protect the public interest or integrity of gaming. (f) (Reserved). (g) Criminal history record information.--Notwithstanding any other provision of this part or regulation of the board, a nongaming service provider shall obtain from the Pennsylvania State Police and provide to the board the results of a criminal history record information check under 18 Pa.C.S. Ch. 91 (relating to criminal history record information). (h) Emergency notification.-- (1) A slot machine licensee may use a nongaming service provider prior to the board receiving notification under this section when a threat to public health, welfare or safety exists or circumstances outside the control of the slot machine licensee require immediate action to mitigate damage or loss to the slot machine licensee's licensed facility or to the Commonwealth. (2) A slot machine licensee that uses a nongaming service provider in accordance with paragraph (1) shall: (i) Notify the board immediately upon engaging a nongaming service provider for which the board has not previously received notification in accordance with subsection (a). (ii) Provide the notification required under subsection (a) within a reasonable time as established by the board. (i) Nongaming service provider list.-- (1) The board shall have the authority to prohibit a nongaming service provider from engaging in business with a slot machine licensee upon a finding by the board that the prohibition is necessary to protect the public interest and the integrity of gaming. (2) The board shall develop and maintain a list of prohibited nongaming service providers and make it available upon request to a slot machine licensee or an applicant for a slot machine license. (3) A slot machine licensee or applicant for a slot machine license may not enter into an agreement or engage in business with a nongaming service provider appearing on the list described in paragraph (2). (j) Duties of nongaming service provider.--A nongaming service provider shall: (1) Cooperate with the board and bureau regarding an investigation, hearing, enforcement action or disciplinary action. (2) Comply with each condition, restriction, requirement, order or ruling of the board issued under this part or regulation of the board. (3) Report any change in circumstances to the slot machine licensee or applicant for a slot machine license that may render the nongaming service provider ineligible, unqualified or unsuitable for the provision of goods or services at a licensed facility or use in the operation of a licensed facility. The slot machine licensee or applicant for a slot machine license shall report any change in circumstances to the board in such form and manner as the board may establish. (k) Construction.--Nothing in this section shall be construed to limit the powers and authority of the board under section 1202 (relating to general and specific powers) or the regulatory authority of the board under section 1207 (relating to regulatory authority of board). (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added section 1317.3.

4 Pa.C.S. § 1318 Occupation permit application.

(a) Application.--Any person who desires to be a gaming employee and has a bona fide offer of employment from a licensed gaming entity shall apply to the board for an occupation permit. A person may not be employed as a gaming employee unless and until that person holds an appropriate occupation permit issued under this section. The board may promulgate regulations to reclassify a category of nongaming employees or gaming employees upon a finding that the reclassification is in the public interest and consistent with the objectives of this part. (b) Requirements.--The application for an occupation permit shall include, at a minimum: (1) The name and home address of the person. (2) The previous employment history of the person. (3) The criminal history record of the person, as well as the person's consent for the Pennsylvania State Police to conduct a background investigation. (4) A photograph of the person. (5) Evidence of the offer of employment and the nature and scope of the proposed duties of the person, if known. (6) The details of any occupation permit or similar license granted or denied to the applicant in other jurisdictions and consent for the board to obtain copies of applications submitted or permits or licenses issued in connection therewith. (7) Any other information determined by the board to be appropriate. (c) Prohibition.--No slot machine licensee may employ or permit any person under 18 years of age to render any service whatsoever in any area of its licensed facility where slot machines or table games are physically located. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.; Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 amended subsec. (c). 2006 Amendment. Act 135 amended subsec. (b)(4). Cross References. Section 1318 is referred to in section 1604 of this title.

4 Pa.C.S. § 1319 Alternative manufacturer licensing standards.

(a) General rule.--The board may determine whether the licensing standards of another jurisdiction within the United States in which an applicant for a manufacturer license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this part. If the board makes that determination, it may issue a manufacturer license to an applicant who holds a similar manufacturer license in such other jurisdiction after conducting an evaluation of the information relating to the applicant from such other jurisdictions, as updated by the board, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the board may incorporate such information in whole or in part into its evaluation of the applicant. (b) Abbreviated process.--In the event an applicant for a manufacturer license is licensed in another jurisdiction, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. Nothing in this section shall be construed to waive any fees associated with obtaining a license through the normal application process. (Jan. 7, 2010, P.L.1, No.1, eff. imd.)

4 Pa.C.S. § 1319.1 Alternative supplier licensing standards.

(a) General rule.--The board may determine whether the licensing standards of another jurisdiction within the United States in which an applicant for a supplier's license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as required by this part. If the board makes that determination, it may issue a supplier license to an applicant who holds a similar supplier license in another jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the board, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed; the board may incorporate the information in whole or in part into its evaluation of the applicant. (b) Abbreviated process.--In the event an applicant for a supplier license is licensed in another jurisdiction, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. Nothing in this section shall be construed to waive any fees associated with obtaining a license through the normal application process. (Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 added section 1319.1.

4 Pa.C.S. § 1320 Slot machine testing and certification standards.

(a) Use of other state standards.--The board may determine, at its discretion, whether the slot machine testing and certification standards of another jurisdiction within the United States in which an applicant for a manufacturer license is licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this part. If the board makes that determination, it may permit a manufacturer through a licensed supplier as provided in section 1317 (relating to supplier licenses) to deploy those slot machines which have met the slot machine testing and certification standards in such other jurisdictions without undergoing the full testing and certification process by a board-established independent facility. In the event slot machines of an applicant for a manufacturer license are licensed in such other jurisdiction, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a slot machine certification to such an applicant. (b) Facility in Commonwealth.--Within three years immediately following the effective date of this part, the board shall establish and maintain an independent slot machine testing and certification facility. The cost for the establishment and operation of an independent slot machine testing and certification facility shall be paid by each licensed manufacturer in accordance with a schedule adopted by the board. The facility shall be made available to each slot machine manufacturer and supplier as determined by the board. (b.1) Use of private testing and certification facilities.--Notwithstanding any other provisions of this part or regulation of the board, if a slot machine is tested and certified by a private testing and certification facility registered with the board, the board shall use an abbreviated certification process requiring only that information determined by it to be necessary to consider the issuance of a slot machine certification under this section. Within one year of the effective date of this subsection, the board shall promulgate regulations that: (1) Provide for the registration of private testing and certification facilities. Persons seeking registration under this subsection shall be subject to section 1202(b)(9) (relating to general and specific powers). (2) Specify the form and content of the application for registration. (3) Establish and collect an application fee for persons seeking registration. The application fee shall include the costs of all background investigations as determined necessary and appropriate by the bureau. (4) Establish uniform procedures and standards which private testing and certification facilities must comply with during the testing and certification of slot machines. (5) Utilize information provided by private testing and certification facilities for the abbreviated certification of slot machines. (6) Establish an abbreviated certification process that may be used by registered private testing and certification facilities to test and certify slot machines. (7) Establish fees that must be paid by licensed manufacturers. (8) Require slot machines submitted for abbreviated certification to be approved or denied by the board within 30 days from the date of submission to the board. If the board fails to act within the 30-day period, the abbreviated certification shall be deemed conditionally approved. (9) Provide procedures and standards for the suspension and revocation of the registration of a private testing and certification facility and the reinstatement of a suspended or revoked registration, as determined appropriate by the board. (c) Central control computer compatibility.--The board shall ensure that all slot machines certified and approved for use in this Commonwealth are compatible and comply with the central control computer and protocol specifications approved by the department. (Oct. 30, 2017, P.L.419, No.42, eff. imd.) Amendment. Act 42 amended subsec. (a) and added subsec. (b.1). Cross References. Section 1320 is referred to in section 13A41 of this title.

4 Pa.C.S. § 1321 Additional licenses and permits and approval of agreements.

(a) Requirements.--In addition to the requirements for a license or permit specifically set forth in this part, the board may require a license, permit or other authorization, and set a fee for the same, for any key employee or gaming employee or any person who satisfies any of the following criteria: (1) The person transacts business within this Commonwealth with a slot machine licensee as a ticket purveyor, tour operator, operator of a bus trip program or operator of any other type of travel program or promotional business related to slot machines or table games. The board may also review, deny, order modification or approve, at its discretion, proposed tours, bus routes and travel programs. (2) The person is presently not required to be licensed or permitted under this part and provides any goods, property or services, including, but not limited to, management services for compensation to a slot machine licensee at the licensed facility. (b) Agreement.--Any agreement to conduct business within this Commonwealth between a person and a slot machine licensee relating to slot machines, table games, table game devices or associated equipment is subject to the approval of the board in accordance with rules and regulations promulgated by the board. Every agreement shall be in writing and shall include a provision for its termination without liability on the part of the slot machine licensee upon a finding by the board that the agreement is not approved or that it is terminated. Failure to expressly include this condition in the agreement is not a defense in any action brought under this section relating to the termination of the agreement. (Jan. 7, 2010, P.L.1, No.1, eff. imd.)

4 Pa.C.S. § 1322 Slot machine accounting controls and audits.

(a) Approval.--Except as otherwise provided by this part, each slot machine license applicant shall, in addition to obtaining a slot machine license, obtain approval from the board in consultation with the department of its proposed site plans and internal control systems and audit protocols prior to the installation and operation of slot machines at the licensed facility. (b) Minimum requirements.--At a minimum, the applicant's or person's proposed internal controls and audit protocols shall: (1) Safeguard its assets and revenues, including, but not limited to, the recording of cash and evidences of indebtedness related to the slot machines. (2) Provide for reliable records, accounts and reports of any financial event that occurs in the operation of a slot machine, including reports to the board related to the slot machines. (3) Ensure as provided in section 1323 (relating to central control computer system) that each slot machine directly provides or communicates all required activities and financial details to the central control computer as set by the board. (4) Provide for accurate and reliable financial records. (5) Ensure any financial event that occurs in the operation of a slot machine is performed only in accordance with the management's general or specific authorization, as approved by the board. (6) Ensure that any financial event that occurs in the operation of a slot machine is recorded adequately to permit proper and timely reporting of gross revenue and the calculation thereof and of fees and taxes and to maintain accountability for assets. (7) Ensure that access to assets is permitted only in accordance with management's specific authorization, as approved by the board. (8) Ensure that recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies. (9) Ensure that all functions, duties and responsibilities are appropriately segregated and performed in accordance with sound financial practices by competent, qualified personnel. (c) Internal control.--Each slot machine license applicant shall submit to the board and department, in such manner as the board shall require, a description of its administrative and accounting procedures in detail, including its written system of internal control. Each written system of internal control shall include: (1) Records of direct and indirect ownership in the proposed slot machine licensee, its affiliate, intermediary, subsidiary or holding company. (2) An organizational chart depicting appropriate segregation of functions and responsibilities. (3) A description of the duties and responsibilities of each position shown on the organizational chart. (4) A detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this section. (5) Record retention policy. (6) Procedure to ensure that assets are safeguarded, including mandatory count procedures. (7) A statement signed by the chief financial officer of the proposed licensed gaming entity or other competent person and the chief executive officer of the proposed licensed gaming entity or other competent person attesting that the officer believes, in good faith, that the system satisfies the requirements of this section. (8) Any other item that the board may require in its discretion.

4 Pa.C.S. § 1323 Central control computer system.

(a) General rule.--To facilitate the auditing and security programs critical to the integrity of slot machine gaming in this Commonwealth, the department shall have overall control of slot machines, and all slot machine terminals shall be linked, at an appropriate time to be determined by the department, to a central control computer under the control of the department and accessible by the board to provide auditing program capacity and individual terminal information as approved by the department and shall include real-time information retrieval and terminal activation and disabling programs. The central control computer selected and employed by the department shall not unduly limit or favor the participation of a vendor or manufacturer of a slot machine as a result of the cost or difficulty of implementing the necessary program modifications to communicate with and link to the central control computer. The central control computer employed by the department shall provide: (1) A fully operational Statewide slot machine control system that has the capability of supporting up to the maximum number of slot machines that could be permitted to be in operation under this part. (2) The employment of a widely accepted gaming industry protocol to facilitate slot machine manufacturers' ability to communicate with the Statewide system. (2.1) The delivery of a system that has the ability to verify software, detect alterations in payout and detect other methods of fraud in all aspects of the operation of slot machines. (3) The delivery of a system that has the capability to support in-house and wide-area progressive slot machines as approved by the board. (4) The delivery of a system that allows the slot machine licensee to install independent player tracking systems and cashless technology as approved by the board. (5) The delivery of a system that does not alter the statistical awards of slot machine games as designed by the slot machine manufacturer and approved by the board. (6) The delivery of a system that provides redundancy so that each component of the network will be capable of operating independently by the department if any component of the network, including the central control computer, fails or cannot be operated for any reason as determined by the department, and to assure that all transactional data is captured and secured. Costs associated with any computer system required by the department to operate at a licensed facility, whether independent or as part of the central control computer, shall be paid by the slot machine licensee. The computer system will be controlled by the department and accessible to the board. (7) The ability to meet all reporting and control requirements as prescribed by the board and department. (8) Any other capabilities as determined by the department in consultation with the board. (b) Personal information.--Except as provided for in subsection (a)(4), the central control computer shall not provide for the monitoring or reading of personal or financial information concerning a patron of a slot machine licensee. (c) Initial acquisition of central control computer.--Notwithstanding any other provision of law to the contrary and in order to facilitate the prompt implementation of this part, initial contracts entered into by the department for a central control computer, including any necessary computer hardware, software, licenses or related services shall not be subject to the provisions of 62 Pa.C.S. (relating to procurement). Contracts made pursuant to the provisions of this section shall not exceed five years. (d) Resolution of contract disputes.--The process specified in 62 Pa.C.S. Ch. 17 Subch. B (relating to prelitigation resolution of controversies) shall be the sole means of resolution for controversies arising with respect to contracts executed under this section. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.) 2006 Amendment. Act 135 amended subsec. (a). Cross References. Section 1323 is referred to in sections 1103, 1322, 3309 of this title.

4 Pa.C.S. § 1324 Protocol information.

The department shall provide, upon request and in advance of the operation of a central control computer, to a licensed slot machine supplier or manufacturer the comprehensive protocol specifications necessary to enable the respective slot machine suppliers or manufacturers of slot machine terminals to communicate with the department's central control computer for the purpose of transmitting auditing program information and for activating and disabling of slot machine terminals. Manufacturers and suppliers shall be afforded a reasonable period of time to comment upon the protocol in advance of the operation of the central control computer. Once adopted, the department shall provide suppliers and manufacturers a reasonable period of time to review and comment on any changes and on documentation data for all proposed changes to the original protocol specifications of the central control computer. Manufacturers and suppliers shall be afforded a reasonable period of time to comment upon and employ all proposed changes to the protocol in advance of its implementation and operation with the central control computer. Notwithstanding the foregoing, the department may expedite changes in the protocol as may be needed to ensure the integrity and stability of the entire system.

4 Pa.C.S. § 1325 License or permit issuance.

(a) Issuance.--In addition to any other criteria provided under this part, any licensed gaming entity, supplier, manufacturer, gaming employee or other person that the board approves as qualified to receive a license or a permit under this part shall be issued a license or permit upon the payment of any fee required and upon the fulfillment of any conditions required by the board or provided for in this part. Nothing contained in this part is intended or shall be construed to create an entitlement to a license or permit by any person. The board shall in its sole discretion issue, renew, condition or deny a slot machine license based upon the requirements of this part and whether the issuance of a license will enhance tourism, economic development or job creation is in the best interests of the Commonwealth and advances the purposes of this part. (b) Eligibility.--A license or permit shall not be granted or renewed unless the board finds that the applicant satisfies all of the following criteria: (1) The applicant has developed and implemented or agreed to develop and implement a diversity plan to assure that all persons are accorded equality of opportunity in employment and contracting by the applicant, its contractors, subcontractors, assignees, lessees, agents, vendors and suppliers. (2) The applicant in all other respects is found suitable consistent with the laws of this Commonwealth and is otherwise qualified to be issued a license or permit. (c) Additional requirements.--In addition to the eligibility requirements otherwise provided in this part, the board may also take into account the following factors when considering an application for a slot machine license: (1) The location and quality of the proposed facility, including, but not limited to, road and transit access, parking and centrality to market service area. (2) The potential for new job creation and economic development which will result from granting a license to an applicant. (3) The applicant's good faith plan to recruit, train and upgrade diversity in all employment classifications in the facility. (4) The applicant's good faith plan for enhancing the representation of diverse groups in the operation of its facility through the ownership and operation of business enterprises associated with or utilized by its facility or through the provision of goods or services utilized by its facility and through the participation in the ownership of the applicant. (5) The applicant's good faith effort to assure that all persons are accorded equality of opportunity in employment and contracting by it and any contractors, subcontractors, assignees, lessees, agents, vendors and suppliers it may employ directly or indirectly. (6) The history and success of the applicant in developing tourism facilities ancillary to gaming development if applicable to the applicant. (7) The degree to which the applicant presents a plan for the project which will likely lead to the creation of quality, living-wage jobs and full-time permanent jobs for residents of this Commonwealth generally and for residents of the host political subdivision in particular. (8) The record of the applicant and its developer in meeting commitments to local agencies, community-based organizations and employees in other locations. (9) The degree to which potential adverse effects which might result from the project, including costs of meeting the increased demand for public health care, child care, public transportation, affordable housing and social services, will be mitigated. (10) The record of the applicant and its developer regarding compliance with: (i) Federal, State and local discrimination, wage and hour, disability and occupational and environmental health and safety laws; and (ii) State and local labor relations and employment laws. (11) The applicant's record in dealing with its employees and their representatives at other locations. (d) Trusts and similar business entities.--The board shall determine the eligibility of a trust or similar business entity to be a licensed entity in accordance with the following: (1) No trust or similar business entity shall be eligible to hold any beneficial interest in a licensed entity under this part unless each trustee, grantor and beneficiary of the trust, including a minor child beneficiary, qualifies for and is granted a license as a principal. The board may waive compliance with this paragraph if the trustee is a banking or lending institution and the board is satisfied that the trustee is not significantly involved in the activities of the licensed entity. In addition to other information required by the board, a banking or lending institution acting as a trustee shall produce at the request of the board any documentation or information relating to the trust. (2) No beneficiary of a trust or similar business entity who is a minor child shall control or be significantly involved in the activities of a licensed entity or its holding company or intermediary. No beneficiary of a trust or similar business entity who is a minor child shall be permitted to vote to elect directors of a licensed entity or its holding company or intermediary. (3) No trust or similar business entity may hold any beneficial interest in a licensed entity unless the board determines that the trust or similar business entity is not engaged in any activity or otherwise being used to evade the public protections under this part, including sections 1512 (relating to financial and employment interests) and 1513 (relating to political influence). (Nov. 1, 2006, P.L.1243, No.135, eff. imd.) 2006 Amendment. Act 135 added subsec. (d). Cross References. Section 1325 is referred to in sections 1212, 1315, 13F02 of this title.

4 Pa.C.S. § 1326 Renewals.

(a) Renewal.--All permits, licenses, registrations or certificates issued under this part unless otherwise provided shall be subject to renewal every five years. Nothing in this subsection shall relieve a licensee, permittee or holder of a certificate or registration of the affirmative duty to notify the board of any changes relating to the status of its license, permit, certificate or registration or to any other information contained in the application materials on file with the board. The application for renewal shall be submitted at least 180 days prior to the expiration of the permit, license, registration or certificate and shall include an update of the information contained in the initial and any prior renewal applications and the payment of any renewal fee required by this part. Unless otherwise specifically provided in this part, the amount of any renewal fee shall be calculated by the board to reflect the longer renewal period. A permit, license, registration or certificate for which a completed renewal application and fee, if required, has been received by the board will continue in effect unless and until the board sends written notification to the holder of the permit, license, registration or certificate that the board has denied the renewal of such permit, license, registration or certificate. (b) Revocation or failure to renew.--In addition to any other sanctions the board may impose under this part, the board may at its discretion suspend, revoke or deny renewal of any permit, license, registration or certificate issued under this part if it receives any information from any source that the applicant or any of its officers, directors, owners or key employees is in violation of any provision of this part, that the applicant has furnished the board with false or misleading information or that the information contained in the applicant's initial application or any renewal application is no longer true and correct. In the event of a revocation or failure to renew, the applicant's authorization to conduct the previously approved activity shall immediately cease, and all fees paid in connection therewith shall be deemed to be forfeited. In the event of a suspension, the applicant's authorization to conduct the previously approved activity shall immediately cease until the board has notified the applicant that the suspension is no longer in effect. (Jan. 7, 2010, P.L.1, No.1, eff. imd.; Oct. 30, 2017, P.L.419, No.42, eff. imd.) Cross References. Section 1326 is referred to in sections 13B13, 13B14, 13B15, 13C14, 13C61, 1518 of this title.

4 Pa.C.S. § 1326.1 Slot machine license operation fee.

(a) Imposition.--Beginning January 1, 2017, the board shall impose an annual slot machine license operation fee on each Category 1 and Category 2 licensed gaming entity in an amount equal to 20% of the slot machine license fee paid at the time of issuance under section 1209(a) (relating to slot machine license fee). (b) Payment of fee.--The department shall develop a payment schedule for the slot machine license operation fee imposed under subsection (a). (c) Credit for payment.--The department shall credit against the slot machine license operation fee imposed under subsection (a) any amount paid by a: (1) Except as provided in subparagraph (2), Category 1 or 2 licensed gaming entity: (i) under section 1403(c)(3) (relating to the establishment of State Gaming Fund and net slot machine revenue distribution) between January 1, 2017, and May 27, 2017; and (ii) to a municipality under an agreement between the Category 1 or 2 licensed gaming entity and the municipality in lieu of a payment under section 1403(c)(3), as certified to the department by the municipality receiving the funds. (2) Category 2 licensed gaming entity located in a city of the first class: (i) under section 1403(c)(2) between January 1, 2017, and May 27, 2017; and (ii) to a city of the first class under an agreement between the Category 2 licensed gaming entity and the city in lieu of a payment under section 1403(c)(2), as certified to the department by the city. (d) Failure to pay.--The board may at its discretion suspend, revoke or deny a permit or license issued under this part if a Category 1 or Category 2 licensed gaming entity fails to pay the slot machine license operation fee imposed under subsection (a). (e) Deposit of slot machine license operation fee.--The total amount of all slot machine license operation fees imposed and collected by the board under this section shall be deposited in the fund and shall be appropriated to the department on a continuing basis for the purposes under section 1403(c)(3) and (4). (Oct. 30, 2017, P.L.419, No.42, eff. imd.) 2017 Amendment. Act 42 added section 1326.1. Section 34(1) of Act 42 provided that the addition of section 1326.1 shall be retroactive to January 1, 2017. Cross References. Section 1326.1 is referred to in section 1403 of this title.

4 Pa.C.S. § 1327 Nontransferability of licenses.

A license or permit issued by the board is a grant of the privilege to conduct a business in this Commonwealth. Except as permitted by section 1328 (relating to change in ownership or control of slot machine licensee), a license or permit granted or renewed pursuant to this part shall not be sold, transferred or assigned to any other person; nor shall a licensee or permittee pledge or otherwise grant a security interest in or lien on the license or permit. Nothing contained in this part is intended or shall be construed to create in any person an entitlement to a license. The board has the sole discretion to issue, renew, condition or deny the issuance of a slot machine license based upon the purposes and requirements of this part. (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

4 Pa.C.S. § 1328 Change in ownership or control of slot machine licensee.

(a) Notification and approval.-- (1) A slot machine licensee shall notify the board immediately upon becoming aware of any proposed or contemplated change of ownership of the slot machine licensee by a person or group of persons acting in concert which involves any of the following: (i) More than 5% of a slot machine licensee's securities or other ownership interests. (ii) More than 5% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the licensee. (iii) The sale other than in the ordinary course of business of a licensee's assets. (iv) Any other transaction or occurrence deemed by the board to be relevant to license qualifications. (2) Notwithstanding the provisions of paragraph (1), a slot machine licensee shall not be required to notify the board of any acquisition by an institutional investor pursuant to paragraph (1)(i) or (ii) if the institutional investor holds less than 10% of the securities or other ownership interests referred to in paragraph (1)(i) or (ii), the securities or interests are publicly traded securities and its holdings of such securities were purchased for investment purposes only and the institutional investor files with the board a certified statement to the effect that it has no intention of influencing or affecting, directly or indirectly, the affairs of the licensee, provided, however, that it shall be permitted to vote on matters put to the vote of the outstanding security holders. Notice to the board and board approval shall be required prior to completion of any proposed or contemplated change of ownership of a slot machine licensee that meets the criteria of this section. (b) Qualification of purchaser of slot machine licensee; change of control.--The purchaser of the assets, other than in the ordinary course of business, of any slot machine licensee shall independently qualify for a license in accordance with this part and shall pay the license fee as required by section 1209 (relating to slot machine license fee). A change in control of any slot machine licensee shall require that the slot machine licensee independently qualify for a license in accordance with this part, and the slot machine licensee shall pay a new license fee as required by section 1209, except as otherwise required by the board pursuant to this section. The new license fee shall be paid upon the assignment and actual change of control or ownership of the slot machine license. (c) Change in control defined.--For purposes of this section, a change in control of a slot machine licensee shall mean the acquisition by a person or group of persons acting in concert of more than 20% of a slot machine licensee's securities or other ownership interests, with the exception of any ownership interest of the person that existed at the time of initial licensing and payment of the initial slot machine license fee, or more than 20% of the securities or other ownership interests of a corporation or other form of business entity which owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the licensee. (d) Fee reduction.--The board may in its discretion eliminate the need for qualification and/or proportionately reduce, but not eliminate, the new license fee otherwise required pursuant to this section in connection with a change of control of a licensee, depending upon the type of transaction, the relevant ownership interests and changes thereto resulting from the transaction and other considerations deemed relevant by the board. (e) License revocation.--Failure to comply with this section may cause the license issued under this part to be revoked or suspended by the board unless the purchase of the assets or the change in control that meets the criteria of this section has been independently qualified in advance by the board and any required license fee has been paid. (Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 amended subsecs. (a)(1) and (b). Cross References. Section 1328 is referred to in sections 1209, 1302, 1307, 1312, 1327 of this title.

4 Pa.C.S. § 1329 Portability and relocation of slot machine license.

(a) General rule.--Except as otherwise provided in this section, each slot machine license shall only be valid for the specific physical location within the municipality and county for which it was originally granted. (b) Petition.--An applicant for a slot machine license or a slot machine licensee may petition the board to relocate its facility. In determining whether to grant a petition to relocate, the board shall: (1) Evaluate the proposed new location and the reason for the relocation. (2) Conduct an analysis comparing estimated gross terminal revenues and estimated gross table game revenues at the proposed new location with estimated or actual gross terminal revenues and estimated or actual gross table game revenues at the approved current location. (3) Conduct an analysis comparing the economic impact of the licensed facility at the proposed new location with the estimated or actual economic impact at the approved current location. The comparative analysis shall include the total cost of the project and projected direct and indirect employment figures. (4) Commission a comprehensive traffic study for the proposed new location. (5) Evaluate community support or opposition. (6) Consider any other information submitted by the petitioner or requested by the board. (c) Relocation.--A slot machine licensee may move or relocate the licensed facility with board approval upon good cause shown if the relocation of the licensed facility: (1) remains within the same county as when it was originally licensed; (2) will facilitate the timely commencement or the continued conduct of gaming operations; (3) complies with all other provisions of this part related to the siting and location of a licensed facility; and (4) is in the best interests of the Commonwealth. (d) Public input hearing.--The board shall hold at least one public input hearing in the municipality where the licensed facility will be located prior to ruling on the petition. (e) Restriction.--No grant or loan from the Commonwealth may be awarded for the purpose of relocating or developing the relocated licensed facility to comply with any conditions of approval of the relocation. (Jan. 7, 2010, P.L.1, No.1, eff. imd.)

4 Pa.C.S. § 1330 Multiple slot machine license prohibition (Repealed).

2017 Repeal. Section 1330 was repealed Oct. 30, 2017, P.L.419, No.42, effective immediately.

4 Pa.C.S. § 1331 Duty of licensees, key employees and gaming employees.

Any licensee, key employee or gaming employee shall have the duty to: (1) provide any assistance or information required by the board or the Pennsylvania State Police and to cooperate in any inquiry, investigation or hearing; (2) consent to inspections, searches and seizures; (3) inform the board of any actions which they believe would constitute a violation of this part; and (4) inform the board of any arrests for any violations of offenses enumerated under 18 Pa.C.S. (relating to crimes and offenses).

4 Pa.C.S. § 1332 Appointment of trustee.

(a) Appointment.--Upon petition of the Office of Enforcement Counsel, the board may appoint a trustee from the list required under subsection (j) to act on behalf of the interests of the Commonwealth and the board to ensure compliance with this part and any conditions imposed upon the slot machine license. A trustee may be appointed only in the following circumstances: (1) Upon the revocation, suspension or nonrenewal of a slot machine license or a principal license if the principal licensee is the only principal who exercises operational control of the licensed facility. (2) Upon the failure to renew a slot machine license or a principal license if the principal licensee is the only principal who exercises operational control of the licensed facility. (3) If necessary to protect the best interests of the Commonwealth. (b) Qualifications.--The following shall apply: (1) A trustee shall be required to qualify as a principal and obtain a principal license. The board may appoint a trustee and award the trustee a temporary principal license as prescribed in board regulations. (2) Before assuming duties, a trustee shall execute and file a bond for the faithful performance of the trustee's duties. The bond shall be payable to the board with sureties and in the amount and form as required by board order. The cost of the bond shall be paid by the former or suspended licensee. (3) A trustee shall be a resident of this Commonwealth. (c) Powers.--A trustee appointed under this section shall exercise only those powers, duties and responsibilities expressly conferred upon the trustee by the board. The board's order appointing the trustee shall set forth the powers, duties and responsibilities of the trustee which may include: (1) Maintaining and operating the licensed facility in a manner that complies with this part and any conditions imposed by the board. (2) Maintaining and operating the licensed facility consistent with the measures generally taken in the ordinary course of business including: (i) Entering into contracts. (ii) Borrowing money. (iii) Pledging, mortgaging or otherwise encumbering the licensed facility or property thereof as security for the repayment of loans subject to any provisions and restrictions in any existing credit documents. (iv) Hiring, firing and disciplining employees. (3) Exercising the rights and obligations of the former or suspended licensee. (4) Taking possession of all of the assets of the slot machine licensee, including its books, records and papers. (5) Establishing accounts with financial institutions. An account may not be established with a financial institution in which the licensee, an affiliate of the former or suspended licensee, the trustee or an immediate family member of the trustee has a controlling interest. (6) Meeting with the former or suspended licensee. (7) Meeting with principals and key employees at the licensed facility. (8) Meeting with the independent audit committee. (9) Meeting with the board's executive director and keeping the board's executive director apprised of actions taken and the trustee's plans and goals for the future. (10) Hiring legal counsel, accountants or other consultants or assistants, with prior approval of the board, as necessary to carry out the trustee's duties and responsibilities. (11) Settling or compromising with any debtor or creditor of the former or suspended licensee, including any taxing authority. (12) Reviewing outstanding agreements to which the former or suspended licensee is a party and advising the board as to which, if any, of the agreements should be the subject of scrutiny, examination or investigation by the board. (13) Obtaining board approval prior to any sale, change of ownership, change of control, change of financial status, restructuring, transfer of assets or execution of a contract or any other action taken outside of the ordinary course of business. (14) Obtaining board approval for any payments outside of those made in the ordinary course of business. Notwithstanding any provision contained in this subsection to the contrary, the trustee shall have the duty to conserve and preserve the assets of the licensed gaming entity. (d) Compensation.--The board shall establish the compensation of a trustee and shall review and approve actual and reasonable costs and expenses of the trustee, legal counsel, accountants or other consultants or assistants hired by the trustee. The compensation, costs and expenses shall be paid by the former or suspended licensee. Total compensation for the trustee and all persons hired or retained by the trustee under subsection (c)(10) shall not exceed $600 per hour in the aggregate unless otherwise increased by the board pursuant to subsection (d.2). (d.1) Calculation of compensation.--In determining the aggregate hourly rate of compensation to be paid to the trustee and all other persons hired or retained by the trustee, the board shall consider: (1) The time and labor required, the difficulty of the questions involved and the skill required to properly perform the required services. (2) Whether the acceptance of the position by the trustee or other person will preclude the trustee or other person from other employment. (3) The fee customarily charged for similar services. (4) The nature and potential length of the duties. (5) The experience, reputation and ability of the trustee or other person selected to perform the services. (d.2) Compensation exceptions.-- (1) On January 1 of each year, the board may adjust the aggregate hourly rate of compensation authorized under subsection (d) for inflation. The adjustment shall not exceed the percentage change in the Consumer Price Index for All Urban Consumers for the Pennsylvania, New Jersey, Delaware and Maryland area for the most recent 12-month period for which figures have been officially reported by the United States Department of Labor, Bureau of Labor Statistics. When adjusted, the board shall publish the adjusted aggregate hourly rate of compensation in the Pennsylvania Bulletin. (2) Upon petition by the Director of the Office of Enforcement Counsel, the board may increase the total hourly rate of compensation above the limitation contained in subsection (d) for good cause shown. The board shall consider the factors under subsection (d.1) when calculating any increase requested by the office. (e) Reports.--A trustee shall file reports relating to the administration of the trusteeship with the board in the form and at intervals as the board orders. The board may direct that copies or portions of the trustee's reports be mailed to creditors or other parties in interest and make summaries of the reports available to the public and shall post them on the board's Internet website. (f) Review of actions.--A creditor or other party in interest aggrieved by any alleged breach of a delegated power or duty or responsibility of a trustee in the discharge of the trustee's duties may request a review of the trustee's action or inaction by filing a petition in accordance with board regulations. The petition must set forth in detail the pertinent facts and the reasons why the facts constitute the alleged breach. The board shall review any petition filed under this section and take whatever action, if any, it deems appropriate. (g) Effect of the trusteeship.--After issuance of an order to appoint a trustee, the former or suspended principal or slot machine licensee may not exercise any of its privileges, collect or receive any debts or pay out, sell, assign or transfer any of its assets to anyone without prior approval of the appointed trustee and the board. (h) Disposition of net income.--During the period of trusteeship, net income from the licensed facility shall be deposited in an escrow account maintained for that purpose. Payments from the escrow account during the period of trusteeship may not be made without the prior approval of the board. A suspended or former principal or slot machine licensee may request distribution of all or a portion of the funds in the escrow account during the period of trusteeship by filing a petition in accordance with board regulation. The suspended or former principal or slot machine licensee shall have the burden of demonstrating good cause for the distribution of the funds requested. (i) Discontinuation.--The board may issue an order to discontinue a trusteeship when: (1) the board determines that circumstances requiring the appointment of the trustee no longer exist; or (2) the trustee has, with the prior approval of the board, consummated the sale, assignment, conveyance or other disposition of all the assets or interest of the former principal or slot machine licensee relating to the slot machine license. (j) List of approved trustees.--The board shall promulgate regulations governing establishment of a list of persons approved by the board and qualified to serve as a trustee. At a minimum, the regulations shall provide for the following: (1) The minimum qualifications a person must possess to be approved as a trustee, which shall include the qualifications set forth in subsection (b). (2) The procedure for placement on or removal from the approved trustee list. (3) Any other information the board deems necessary to carry out the intent of this section. (Jan. 7, 2010, P.L.1, No.1, eff. imd.) 2010 Amendment. Act 1 added section 1332. Cross References. Section 1332 is referred to in sections 1103, 1202, 1214, 13B62, 1513, 1517 of this title.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=04Fetched: 10/16/2026